During the first World Challenge Cup in 1979 Davis acted as England's captain (the team was completed by John Spencer and Graham Miles). He won his first seven frames as England won matches 8–7 over Northern Ireland and the Rest of the World. England were, however, defeated 14–3 in the final by Wales. Although Davis lost 13–5 to David Taylor in his first match in the 1980 World Snooker Championship, he did reach the quarter-finals of the UK Championship the following season, with a 9–6 victory over Mark Wildman before his 9–6 defeat by Alex Higgins. In 1981, at the age of 67, Davis played in his last snooker final, the Raffles/Sheffield Shield Tournament played at the Sheffield Snooker Centre. He beat Mike Watterson 9–6 and Dennis Taylor 9–5. In the final he led Terry Griffiths 4–1, but eventually lost 9–5. Earlier in the season he played in his last Masters, beating Kirk Stevens 5–4 in the first round before losing to Terry Griffiths 5–2 in the quarter-finals.