Bingham was appointed manager of Northern Ireland for a second time in March 1980, and it would be in this second spell that his managerial career would be best remembered. He led the nation to victory in the British Home Championship in 1980, only the nation's second outright victory in 96 years, as they beat both Scotland and Wales, whilst holding England to a draw. However they only managed a point in 1982. He led Northern Ireland to the 1982 FIFA World Cup, after qualifying, along with Scotland, with unlikely victories over Sweden, Portugal, and Israel. In the tournament itself, despite a limited squad with only a few genuine world class players at his disposal (goalkeeper Pat Jennings, captain Martin O'Neill, and 17-year-old Norman Whiteside), Bingham's team stunned the host nation, Spain with a 1–0 victory at the Mestalla Stadium. Their draws with Honduras and Yugoslavia meant they shocked the world by finishing top of their group with only two goals from Gerry Armstrong. They exited at the Second Round with a 2–2 draw with Austria and a 4–1 defeat to France.