The team finished first in the Scottish Premier Division and won the third of their nine league titles in a row.
There was significant transfer activity during the season with England international striker Mark Hateley arriving from Monaco and Terry Butcher departing for Coventry CIty.
The managers job was given to Souness' assistant Walter Smith who managed to lead Rangers to the title, with a 2–0 win over Aberdeen at Ibrox on the last day of the season.
Rangers won the Scottish League Cup, defeating Celtic 2–1 AET.
In Europe they were knocked out the European Cup in the second round by Serbian side Red Star Belgrade (Red Star would go on to lift the trophy, beating Marseille in the final).