The 2002 – 2003 campaign proved to be a fantastic one for Southampton. They were outstanding in the league as they finished off in a very respectable eighth place, their highest finish since 1990. It was a year that saw James Beattie finish off as the top English goal scorer in the premiership. The Saints reached the final of the FA cup for the second time in the clubs history and met Arsenal in the final of the competition, suffering a narrow 1-0 defeat against the Gunners at the Millennium Stadium. Wayne Bridge was in outstanding form for the Saints and left the club at the end of the season for Chelsea.
Southampton reached the quarter finals of the league cup the following year as they suffered a defeat against future finalists Bolton Wanderers in the competition. The Saints also enjoyed a fine 12th position finish. However the 2004 – 2005 campaign was a disappointing one for the Saints as they suffered relegation in to the second tier of English football for the first time in 27 years as they were involved in a relegation battle that consisted of West Brom, Crystal palace and Norwich City. Despite Peter Crouch playing well for the Saints they finished the season off in the bottom three.
Harry Redknapp remained as manager for few months during the 2005 – 2006 season as the Saints could only manage a 12th place finish at the end of the campaign. It was a season also notable for the emergence of Theo Walcott, a player who moved to Arsenal in January 2006.