1940-41 Prince Edward Island Junior Playoffs

The Charlottetown Royals and a team from Kensington were the only teams competing at this level and this advanced to the 1940-41 Maritimes Junior Playoffs.

Note: This was also the semifinal round of the Maritimes Playoffs

Charlottetown Royals beat Kensington 13 goals to 4.

Charlottetown would go on to defeat the Truro Bearcats in the Maritimes final and would advance to the 1940-41 Eastern Canada Memorial Cup Playoffs.