After retiring from playing following the 1991 season, Cavanaugh worked as an offensive coach and offensive coordinator for teams including the San Francisco 49ers, Chicago Bears, Baltimore Ravens (where he earned a third ring as a coach), Washington Redskins (now the Washington Commanders), and New York Jets.

[3][9] He was also named MVP of the 1977 Gator Bowl, throwing for 387 yards and four touchdown passes in a 34–3 win over Clemson.

[3] In 1977, Cavanaugh missed playing time with a broken wrist, but the team still finished 9–2–1, and was ranked number 7 in the country.

[3] Cavanaugh was selected by the New England Patriots with the 50th overall pick in the second round of the 1978 NFL draft,[14] but spent much of his career as a backup.

[15] His professional playing career included stints with the Patriots (1979-82), San Francisco 49ers (1983-85), Philadelphia Eagles (1986-89), and New York Giants (1990-91).

[16] Cavanaugh retired as a professional player following the 1991 season, appearing in 112 games with 19 starts, completing 305 of 579 passes for 4,332 yards, 28 touchdowns, 30 interceptions and a 71.7 passer rating.

[23] On January 23, 2017, Cavanaugh was promoted to Washington's offensive coordinator, replacing Sean McVay, who became the head coach of the Los Angeles Rams.

[34] On August 25, 2021, Cavanaugh was hired by the New York Jets as a senior offensive assistant to coach Robert Saleh.