2013 finalists Rangers needed an extra time goal from Nicky Law at Ibrox last year to squeeze past Hibs, who had goalscorer Danny Handling sent off.
The Gers then crushed Clyde 8-1 in the second round before defeating East Fife in the quarter finals.
However, they suffered a 3-2 defeat away to Alloa in the last four, with the Wasps proceeding to the final where they lost 4-0 to Livingston.
The first pairing out of the hat was a Fife derby - Cowdenbeath will take on Raith Rovers at Central Park while East Stirlingshire will face local rivals Stenhousemuir and Dumbarton have a fairly short trip to take on Morton at Cappielow.
Elsewhere in the draw, St Mirren will host Berwick Rangers, Edinburgh City take on Queen’s Park and last year’s runners-up Alloa travel to Brora.
Draw in full
North Section: Cowdenbeath v Raith; Forfar v Montrose; Arbroath v Dunfermline; Brechin v Peterhead; Falkirk v East Fife; Elgin v Stirling Albion; East Stirling v Stenhousemuir; Brora Rangers v Alloa
South Section: Annan v Airdrie; St Mirren v Berwick; Edinburgh City v Queen’s Park; Morton v Dumbarton; Ayr v Albion Rovers; Livingston v Clyde; Hibs v Rangers; Queen of the South v Stranraer
Ties to be played on July 25.