For the first time since 1977–78, Real Madrid was not involved in any European competitions due to the previous season's lowest league finish in 19 years.

For the first time since the 1977–78 season, Real Madrid only played in the domestic competitions after having rejected the option to enter the 1996 Intertoto Cup.

New signings Predrag Mijatović and Davor Šuker played alongside main striker Raúl González as well as Clarence Seedorf in midfield.

However as rivals Barcelona also slipped in early June after a loss against Hércules, Real took an advantage by crushing CF Extremadura 5-0 in the same weekend.

In the Copa del Rey, Madrid advanced to the round of 16 where they faced perennial rivals Barcelona, losing 4–3 on aggregate.