The 1954 Kategoria e Dytë was the 10th season of a second-tier Association football league in Albania. The season started in March and ended in August. The Second Division 1954 sees the participation of 48 teams divided into 8 groups, whose winners play the second phase in 2 groups of four. The first two classified play the final for the division title and are promoted together with the second of the two final groups, but instead of the team of the Physical Education Technical School Vojo Kushi from Tirana, the Tekstilisti "Stalin" Yzberish from the capital is admitted to the First Division. Dinamo Shkodër wins the division champion title by beating Puna Gjirokastër in the final.