The Pilgrims enjoyed a great season under the managerial guidance of Dave Smith during the 1985 – 1986 campaign as they were in emphatic form in the third division, finishing the season off in a very respectable second position, gaining promotion back into o the second division. They crashed out of the FA cup in the third round as they suffered defeat against Hull City in the competition. Smith remained in charge at the club until the year 1988 and during that time he established the Pilgrims as a second division team, most notably, his side narrowly missed out on a play off position at the end of the 1986 – 1987 season, finishing off in 7th position. He took the Pilgrims to the fifth round of the FA Cup in 1988; however they suffered defeat against Arsenal.
Ken Brown took over as manager at the club in 1988 and spent two years in charge of the club between 1988 and 1990.
The 1989 – 1990 Plymouth Argyle side included players like, Rhys Wilmot, Kenny Brown, John Brimacombe, Nick Marker, Adrian Burrows, Kevin Hodges, David Byrne, Sean McCarthy, Tommy Tynan, Andy Thomas, Mark Stuart.