Despite a promising start to the 1995–96 season, Forfar were relegated back to the Third Division under the continued management of Campbell and the captaincy of Ian McPhee.

In late 1996, McPhee took over as player-manager following the departure of Campbell to neighbours Arbroath, taking his side on an impressive run of results that saw them achieve promotion on goal difference ahead of Ross County.

The match was televised live by BBC Scotland, and although the Loons lost 6–0,[19] the club received a considerable cash bonus as a result of the tie.

Cooper remained manager until January 2003 when he moved back to become head youth coach for his former club Aberdeen,[20] leaving the Loons in a strong league position.

[23] Stewart became increasingly unpopular with the fans towards the end of the 2003–04 season following a string of poor results, which left the Loons rooted in mid-table.

[25] A good run was also achieved in the Challenge Cup when the club beat Greenock Morton, Queen's Park and Clyde to reach the semi-finals only to be knocked out by Ross County in a 5–2 defeat.

[29] Fairley was to lead the club to mid-table safety by season end, cumulating in a 3–0 victory over champions Brechin City.

[35] A former manager of East Fife, Moffat's first game in charge was a 9–1 defeat to Greenock Morton on 7 April 2007, which saw Forfar relegated to the Third Division.

[37] Dick Campbell became Forfar's manager on 8 May 2008 on a two-year deal, after Jim Moffat failed to improve the team's fortunes.

The start of the season was a mixed affair with Forfar being unbeaten away from home but found lacking when playing at Station Park.

With a dreadful winter and numerous games called off the months of March and April were for catch up and Dick was very close to leading the team into the play-offs for the Irn-Bru Second Division.

During his first season at Station Park Dick cut the wage bill and due to good cup success took Forfar Athletic out of the red and into the black.

On 16 May 2010 Dick and Ian Campbell got Forfar promoted to the second division through the playoffs with a 2–0 victory against local rivals Arbroath.

On 14 May 2011, Forfar failed to reach the play-off final for First Division status, losing out to Ayr United, by an aggregate score of 7–4.

On 3 August 2013, Forfar claimed arguably the biggest result in their history when they defeated Rangers 2–1 at Station Park in the first round of the 2013–14 Scottish League Cup, with both goals coming from Gavin Swankie.

In 2014–15 season Campbell almost led Forfar to their best achievement in modern times, a League One title, but missed out to Morton and lost a 3–1 lead to Alloa in the play-off final.

A swift return seemed to be on the cards with the team holding first place for virtually all season, only to collapse at the end and finish 2nd behind Arbroath.

On 10 November 2019, former Loons player Stuart Malcolm returned to Forfar Athletic as manager after being announced as Jim Weir's replacement.

On 9 April 2021, Irvine agreed to take charge of the Loons after manager Stuart Malcolm and his assistants resigned from their positions.

On 10 November 2022, Forfar Athletic confirmed the appointment of Ray McKinnon as the club’s new manager on a rolling contract until May 2025.