He played in the 1965 FA Charity Shield against Manchester United at Old Trafford, where a 2–2 draw meant that two clubs shared the trophy. Liverpool then recovered from a loss and a defeat to Sheffield United in the opening two games of the 1965–66 season to go on a strong run of form that included convincing victories over West Ham United (5–1), Merseyside derby rivals Everton (5–0), Nottingham Forest (4–0), Northampton Town (5–0), and Blackburn Rovers (5–2); Smith managed to score against both Everton and Blackburn. They went unbeaten for a total of 18 games from October to late February, and then lost just one of their final ten games to secure the league title with a six-point lead over runners-up Leeds United. They had conceded just 34 goals, the lowest total of any team in the Football League. Liverpool also reached the 1966 European Cup Winners' Cup Final to face German side Borussia Dortmund at Hampden Park, but Smith admitted that his side "lacked our usual edge and appeared disjointed" as they lost the game 2–1 in extra-time.