After the glory years of the early 80’s Watford continued their tremendous run in English football. The 1985-86 season saw the Hornets put on a great show, they showed their potential in the league, evidently in finishing in ninth position in the league. They were some what unlucky in the FA Cup, crashing out in the last eight against the mighty Manchester United. The following season saw Watford progress even further in the FA Cup. They reached the semi finals, meeting Tottenham in the last four, They could not find a way past Spurs, eventually crashing out in a 4-1 defeat in a tie played at Villa Park. They faired worse in the league cup, crashing out in the third round against West Ham, losing 3-2. Watford settled with a mid table finish at the end of their campaign, in a dignified 12th place.
The Hornets long honeymoon period in the top flight of English football was terminated at the end of the 1987-88 season as they finished rock bottom in 20th place. Their only real highlight of the 87-88 season was reaching the last eight of the FA Cup, eventually losing to eventual winners, Wimbledon.
The following season saw the Hornets reach the last 16 of the FA Cup, however on this occasion they lost to the eventual league cup winners, Nottingham Forest, crashing out losing 3-0. Watford came close to promotion, finishing the season off in forth position, however they were eliminated from contention early in the play offs.
The 89-90 campaign proved to be a debacle for Watford, they collapsed in the FA Cup, surrendering a lead against Sheffield United, eventually losing 2-1 and they could only manage a lowly 15th position placing at the end of the season in the second division. To make matters even worse, they lost their star goal keeper, Tony Coton, who moved to Manchester City.