Manager Richard Money, who had experienced a tempestuous relationship with Luton fans, left the club by mutual consent on 28 March 2011 following a 2–1 loss to relegation-threatened Southport.

A 30-point deduction imposed upon Luton Town for financial irregularities effectively crippled their chances of escaping relegation from The Football League in the 2008–09 season.

Richard Money replaced Mick Harford in October 2009, eventually leading the club on a winning run of games throughout the final third of the season that almost saw them topple ultimate victors Stevenage.

Stevenage winger Andy Drury joined the club on 1 July on a free transfer, after an agreement to sign the player was reached towards the end of May.

[11] Three trialists, midfielders Stefan Bailey and Ciarán Toner, and Hungarian goalkeeper Matyas Estherhazy, joined Luton for pre-season training.

[12] On 16 July, it was announced that defender Lewis Emanuel had not joined the club for pre-season training and had subsequently been released after four seasons as a Luton player.

Kroča scored the winning goal in a 1–0 friendly victory over Kilmarnock, while Walker, who had previously been playing for Bedford Town, impressed enough to be offered a one-year contract.

Kroča scored on his competitive debut to give Luton the lead, and Matthew Barnes-Homer grabbed the winner in the 88th minute after Altrincham pulled a goal back midway through the second half.

[18] The club's 100% record was ended with a 1–1 home draw against newly promoted Newport County on 24 August in a game that saw Keith Keane sent off late on.

On 31 August Tom Craddock, Luton's top scorer the previous season, signed for League Two side Oxford United for an undisclosed fee.

[24] On 2 September, striker Taiwo Atieno, who had been released from Luton in July and had subsequently been training with South African champions Supersport United, re-signed for the club on a contract until January 2011.

[27] On 15 September, youth team midfielders Taylor Nathaniel and Adam Watkins, who had made their debuts for Luton the previous season, were sent on loan to Southern Football League Division One Central sides Barton Rovers and Arlesey Town, respectively.

An Andy Drury penalty had given Luton the lead midway through the second half, though Crawley hit back in the closing stages to snatch a win, with Craig McAllister eventually scoring the winner two minutes into added time.

[38] On 22 October, striker Kevin Gallen, who had not played for Luton since the beginning of September, signed for League Two club Barnet on loan until 8 January 2011.

[39] Luton's goalscoring continued on 23 October with a 4–0 victory in the FA Cup 4th qualifying round against Conference South side St Albans City.

17 November also saw Luton play their FA Cup replay against Corby Town – the game ended in a 4–2 victory to the Hatters, with Matthew Barnes-Homer, Taiwo Atieno and Claude Gnakpa scoring the goals.

[55] The severe winter weather continued from November, resulting in Luton's next league game against Forest Green Rovers on 4 December also being postponed.

[61] Luton won the replay 2–1 in a game that resulted in the lowest ever crowd for a competitive match featuring the club; 404 fans were in attendance at Welling, beating the previous low of 469 set at Thames on 6 December 1930.

[68] The loan transfers of Charlie Henry, Alex Lawless and Jason Walker all became permanent on 4 January, while on-loan defender Craig Hinton returned to Northampton Town after playing in just two FA Trophy games.

Taiwo Atieno and youth team product Adam Watkins scored two goals apiece which set up another home tie against Conference North side Gloucester City in early February.

[80] Half an hour before the transfer window shut, Luton confirmed the loan signing of defender Luke Graham from Kettering Town until the end of the season.

[82] Graham scored the winning goal on his full debut, a 1–0 victory over Gloucester City on 4 February, that put Luton into the quarter-final of the FA Trophy.

[95] Later that day, 16-year-old striker Cauley Woodrow, who had made three Luton appearances, was signed by Premier League side Fulham for an undisclosed six-figure fee.

[96] Luton lost 2–1 to relegation-threatened Southport on 26 March, producing a result and performance that caused manager Richard Money to apologise to the fans.

[97][98] The result, and run of form that had seen Luton slip to 15 points behind leaders Crawley Town, led to Money being replaced as manager by his assistant Gary Brabin on 28 March.

[99] Luton drew 3–3 with Kidderminster Harriers on 2 April in an attacking display of football, marking the first time in over two months, and over the course of 13 games, that the club had scored more than two goals in a match.

[102] Luton were forced to settle for, at most, a play-off place, as a win for league leaders Crawley Town the same afternoon meant they claimed the Conference Premier title with five games left of the season.

[114] Luton made their first signing of the close season on 6 June, picking up Rushden & Diamonds striker Aaron O'Connor on a free transfer.

[117] Luton striker Jason Walker, who had missed a penalty in the shoot-out against AFC Wimbledon in the previous month, was sold to York City on 20 June for a fee of £60,000.

[120][121] On 30 June, the last day of the season, central defender Zdeněk Kroča signed for Scottish Premier League side Kilmarnock on a free transfer following the expiration of his contract.