The third Asia cup was held in Bangladesh between 26 October and 4 November 1988.. This is also the first multinational tournament that was held at Bangladesh. Four teams took part in the tournament: India, Pakistan, Sri Lanka and the host nation Bangladesh.
The 1988 Asia Cup was a round-robin tournament where each team played the other three once, and the top two teams qualifying for a place in the final. India and Sri Lanka qualified for the final in which India defeated Sri Lanka by 6 wickets to win its second Asia Cup.