Rangers have been given the chance to avenge their Ramsdens Cup defeat by Queen of the South.
The quarter-final draw has set up a trip to Palmerston for Rangers if they beat Berwick on Tuesday night at Ibrox.
Queens knocked Rangers out on penalties at the same stage last season before going on to beat Partick Thistle in the final.
In the other ties, Highland League side Formartine United have been handed a long trip to Annan, Raith Rovers will host Falkirk and Dundee will play Stenhousemuir at Dens Park.
The ties are scheduled to take place on Saturday, September 7.