In 1988 Rainey returned to Europe, again joining Team Roberts Yamaha, this time in the premier 500cc division riding the YZR500. His arch-rival Schwantz followed him to Europe, signing to race the 500cc class for Team Suzuki. The two would continue their rivalry on race tracks all across Europe, driving each other to higher levels of competitiveness. In 1988, Rainey won his first world championship race at the British Grand Prix. Also in 1988, he and his Team Roberts Yamaha teammate Kevin Magee won the prestigious Suzuka 8 Hours endurance race in Japan. In the 1989 campaign, Rainey finished second overall behind Eddie Lawson, winning three races and placing on the podium in every race that he finished.