Colchester improved on their previous league campaign by one position, finishing in a strong seventh. The U's were eliminated in the League Cup by Charlton Athletic in the first round, but had greater success in the FA Cup. They saw off Oxford United, Leatherhead, Darlington and Newport County before facing Manchester United in the fifth round of the competition at Layer Road. Colchester held on until the 86th-minute before Jimmy Greenhoff broke the deadlock and denied the U's an Old Trafford replay.
Season overview
Bobby Roberts kept the faith in his squad for their second season in the Third Division, but an injury to Eddie Rowles forced him into the transfer market. Despite Colchester suffering financial difficulty, the club spent £15,000 on MillwallforwardTrevor Lee, who became the first black player to represent Colchester's first team.
A strong season in the league saw the club finish one position higher than the previous campaign in seventh, narrowly falling short of the promotion places – nine points behind third-placed Swansea City. In the final game of the season, Colchester recorded their then highest-ever away league victory with a 5–1 win at Tranmere Rovers, less than a month after they had stunned champions-elect Watford 3–0 at Vicarage Road on Good Friday.