On 30 May 2006, in a surprise move, Guidolin was re-hired by his former club Palermo. In his absence, they had reached the round of 16 in their inaugural UEFA Cup run, and had also qualified for the 2006–07 UEFA Cup despite finishing eighth in the league, due to Italian match fixing scandals costing other clubs their places. Guidolin's Serie A campaign started well, but after losing star player Amauri to injury in December, the team went over two months without a win. In the UEFA Cup, they progressed to the group stage but failed to qualify for the knockout stages, ending their campaign in December.