Benfica competed domestically in the Primeira Divisão and the Taça de Portugal, and participated in the European Cup by winning the previous league.

As new signings, the club brought in Russians Vasili Kulkov and Sergei Yuran, and promoted youth graduates Paulo Madeira and Rui Costa to regular starters.

In the league race, Benfica competed with Porto until January, when a three-point gap opened, and a subsequent home loss against them two months later, ended hopes of retaining the title.

In his fifth year at Benfica, Swedish manager Sven-Göran Eriksson had to rebuild a new eleven, following the departures of Ricardo Gomes and Valdo to Paris Saint-Germain.

Three days later, in the second round of the European Cup, Benfica visited Highbury and knocked Arsenal out of the competition, with a 3–1 win, in part due to the individual efforts from Isaías, who bagged a double.

[10] After a second home draw in the European Cup, on 4 March against Sparta Prague, Benfica postponed the league match of 15th, to better focus in the return leg to Czechoslovakia.

[9] On the following Sunday in a decisive game for the title race, an 89th-minute goal from Ion Timofte gave Porto a 3–2 win at Estádio da Luz and increased their lead to five points.

[10] As consolation, the team beat Sporting de Espinho by 6–0 win in the quarter-finals of the Portuguese Cup, thus ensuring a third game against Boavista, on the semi-finals.