The club rose from the depths of the Third Division to the heights of the First Division, then fell back down to the basement league in the next few seasons. However, under manager John McGlashan, the Red Lichties competed at the top of Division 3, finishing 4th in their first season and second in the next, reaching both divisional play-offs in seasons 2005–06 and 2006–07, although failing to gain promotion. They finished fourth in Division 3 and disposed of Cowdenbeath 2–1 on aggregate thanks to a late extra time winner from Robbie Raeside in the semifinal. Stranraer were the opponents in the play-off final and the Red Lichties ran out 2–0 winners in the home tie first leg at Gayfield Park thanks to a Robbie Raeside header and a Barry Sellars strike. At Stranraer, the Red Lichties goal was pummelled for much of the match and they spent much of the second half down to 10 men after Craig Tully had been red-carded. Although one goal was conceded, a resolute defence saw the Red Lichties hold on for a 2–1 aggregate win and promotion.