Late in the 2020-21 season, his Razorbacks cracked the Top 25 for the first time since January 2018 and then hosted No. 6 Alabama as the No. 20 ranked team, the first matchup of ranked teams inside Bud Walton Arena since February 1998. On March 8, 2021, the Razorbacks entered the top 10 of the AP poll for the first time since February 1995, checking in at No. 8 heading into the postseason. He has been named one of 10 semifinalists for the 2021 Werner Ladder Naismith Men's Coach of the Year. Musselman entered the 2021 NCAA Tournament as a #3 Seed, the highest seed for Arkansas since the 1995 Runner-Up team. On March 21, 2021, Musselman led Arkansas to its first Sweet 16 since 1996 in a 2-point win over 6-seed Texas Tech. Musselman ended the Cinderella run of 15-seed Oral Roberts on March 27, 2021, to advance Arkansas to its first Elite 8 since 1995.