Eleven teams participated in the 1954–55 Cypriot Second Division. The league was split into three geographical groups, depending from which Districts of Cyprus each participated team came from. All teams of each group played against each other twice, once at their home and once away. The team with the most points at the end of the season were crowned group champions. The winners of each group played against each other in the final phase of the competition and the winner were the champions of the Second Division. The champion were promoted to the 1955–56 Cypriot First Division.
Point system
Teams received two points for a win, one point for a draw and zero points for a loss.
Changes from previous season
Teams promoted to 1954–55 Cypriot First Division
Aris Limassol
New members of CFA
Alki Larnaca
Orfeas Nicosia
PAEK
Nicosia-Keryneia Group
League standings
Points system: Won=2 points, Drawn=1 point, Lost=0 points
Results
Larnaca-Famagusta Group
League standings
Points system: Won=2 points, Drawn=1 point, Lost=0 points
Results
Limassol-Paphos Group
League standings
Points system: Won=2 points, Drawn=1 point, Lost=0 points
Results
Champions Playoffs
League standings
Points system: Won=2 points, Drawn=1 point, Lost=0 points