In 2010, Marsch retired from his playing career and became a coach, first serving as an assistant with the U.S. national team under Bob Bradley that reached the last 16 of the 2010 FIFA World Cup in South Africa.

The following season, Marsch was appointed the successor to Marco Rose as coach of Red Bull Salzburg in the Austrian Bundesliga; he led the club to a league and cup double in two consecutive seasons, as Salzburg made successive Champions League group stage appearances for the first time in club history.

He returned to RB Leipzig as club coach for the 2021–22 season, leaving by mutual consent in December and joining Leeds United in February.

At the time, he left the Fire as the club's all-time leader in regular season games played with 200 (he now sits sixth behind C. J.

His first came as a substitute in a scoreless World Cup qualifier tie away to Trinidad and Tobago on November 11, 2001;[4] the other came on June 2, 2007, in a 4–1 friendly win against China in San Jose, California.

[5] Following his retirement, Marsch was hired as an assistant to his former college and club coach Bob Bradley with the United States men's national team.

In August 2011, Marsch was unveiled as the first head coach of Major League Soccer expansion franchise Montreal Impact, starting play in 2012.

[12] After a successful start to his career, the Red Bulls extended his contract in June 2016, offering Marsch a multi-year deal.

[13] In January 2017, Marsch was linked to taking over for Óscar García as the manager of Austrian club Red Bull Salzburg.

[17] Marsch became assistant to RB Leipzig head coach Ralf Rangnick for the 2018–19 season, signing a two-year contract in July 2018.

Marsch ultimately left the team after one season to replace Marco Rose as coach of Leipzig's sister club Red Bull Salzburg.

[28] On February 28, 2022, Marsch was appointed as head coach of Premier League side Leeds United and signed a three-year deal following the departure of Marcelo Bielsa.

[41][42] Marsch's debut on June 6 was a 4–0 friendly loss to the Netherlands at De Kuip, after which he said that it was important to play the best national teams to improve for the 2026 World Cup.

[45] A goalless result against Chile in the final group game allowed the Canadians to advance as runners-up, before beating Venezuela on penalties in the quarterfinals.

[46] After a semifinal elimination by eventual champions Argentina, Canada contested the third place playoff against Uruguay, conceding an added-time equalizer by Luis Suárez and losing on penalties.

[47] After the Copa América, Marsch was linked with the national head coach job for the United States, who had fired Gregg Berhalter after a group stage elimination.

[48] He had previously been a candidate to replace Berhalter after the 2022 FIFA World Cup, but the latter was re-hired; Marsch criticized the USSF, saying "I wasn't treated very well" in the application process.