The game was decided on penalties after the teams settled for a two-all draw after open play.
Dedza took the lead in the 17th minute through Fletcher Banda’s freekick.
But Kamuzu Barracks came back into the game after equalising in the 23rd minute through Manase Chiyesa.
Substitute World Nkuliwa shot the soldiers into the lead after coming in as second half substitute.
But Pilirani Makupe handed Dedza Young Soccer Stars after handling in the box and Amadu Makawa made no mistake to level the scores.
But it was not enough to guarantee them a place in the quarterfinals following a penalty awarded to the Youngsters which was converted.
Kamuzu Barracks team manager Kenwood Nkhoma rued the missed chances in open play which cost them the game.
“The whole 90 minutes was so good but it was just unfortunate that we lost that late penalty. So it was just bad luck for us. We created so many opportunities but we managed to score only two,” Nkhoma said.
He wished Dedza the best as they progress in the game.
“I congratulate Dedza Young Soccer for making it to the final. We will go back and look forward to our league games starting this week against Tigers,” he said.
“League games and cups are different because they have a different tempo. The cup is gone and we will concentrate on league games.
Dedza’s outspoke coach Milias Jegwa Pofera said they tamed the soldiers who approached the game too physical.
“It was a tough game and I think Kamuzu Barracks had a physical game which is the way they play. So I told the boys not to fear and keep possession of the ball because that made it difficult for them,” Pofera said.
He also saluted all those who voted them into the competition saying it was an achievement considering that they have just joined the league
Dedza were voted alongside Kamuzu Barracks, Mighty Be Forward Wanderers and Mafco in the preliminary round.
“I can’t go around thanking everybody who voted for us but this is a word I have for Malawians who voted us into the preliminary round,” he said.
Dedza will face Civo United in the quarterfinals of the competition.