A goal in each half was enough to take the Swans into the next round for the first time since 1999.
Goals from Paul Anderson and Jason Scotland proved too much for a Walsall side that were on the back-foot for most of the game.
The Swans showed seven changes from the side beaten at Oldham while Walsall were unchanged after drawing at home to Carlisle.
Making a welcome return to the starting line up after a year out through injury was Swansea skipper Gary Monk.
A mistake by Alan Tate in the 17th minute almost gifted the Saddlers a goal when he sent a poor pass back to Dorus de Vries. Veteran striker Tommy Mooney raced onto the loose ball but the keeper came out quickly to smother.
The Swans took the lead five minutes later following a piece of opportunism from 17-year-old Joe Allen. He scythed his way through the visitors' defence, crossed into the danger area and when it was headed out Paul Anderson was waiting to crash a 20-yard volley into the corner of the net.
Both sides made a change during the interval with Andy Robinson replacing Anderson for the Swans and Alex Nicholls on for Walsall's Portugese striker Paulo Carneiro.
Robinson was soon in the action when he raced onto a pass before firing over the bar and as the Swans piled on the pressure Leon Britton clipped in a cross that Clayton Ince in the Walsall goal had to stretch to gather.
Scotland and Darryl Duffy entered the fray as Swansea went looking for a clinching second goal.
Duffy found himself in space only to shoot tamely at Ince but despite having most of the posession it was not until the 90th minute that Scotland powered his way through before thundering a drive across Ince and into the far corner of the net to give the Swans a well deserved victory.