Augenthaler was born in Fürstenzell, near Passau in Bavaria, West Germany. He played generally in the position of central defender or, especially in the later part of his career, libero (sweeper). In his years with Bayern Munich he won the Bundesliga title seven times and the DFB-Pokal three times. In the European Cup he was runner-up in 1982, vs. Aston Villa (0–1) and again in 1987, although he missed the final due to suspension, when Bayern lost 2–1 to FC Porto.