In the 1992 parliamentary election, the Liberal Union got 1.51 percent of votes and failed to win any seats.

Most of these new members were either former politicians (e. g. former Moderates Movement's leader Eugenijus Gentvilas) or employees of the infamous East-Baltic States-West [lt] investment company.

As a result, the Liberal Union managed to form coalitions with other parties and win mayorships (most notably, in Klaipėda).

This coalition lasted for seven months, when New Union (Social Liberals) withdraw their government ministers.

Along this split, the party started negotiations with former coalition partners, the Lithuanian Centre Union and the Modern Christian Democrats, about merger.