Colin Addison was in his second year in charge at Derby County by the start of the 1980 – 81 season and their first season back in the second division saw them finish off in sixth position as they were unfortunate not to gain promotion in to the top flight. They crashed out of the FA cup in their d round as they suffered defeat against Bristol City which was followed up the following year by another third round finish, this time suffering elimination against Bolton wanderers. The following season saw them struggle in the second division finishing off the 1982 – 1983 campaign in a disappointing 13th position. Peter Taylor took charge at the club at the start of the 1982 – 1983 season and even he could not spur around a turn around. The 1983 – 1984 campaign saw the club finish off in a very disappointing 20th position, in turn relegating the club out of the second division in to the third. They enjoyed a fine run in the FA cup that saw them reach the quarter finals of the competition, suffering a narrow 1-0 defeat against Plymouth Argyle.
Roy McFarland took over form the managerial post at the club in 1984 and saw his side finish off the 1984 – 1985 season finishing off in seventh position in the third division.