Denmark's finest hour in the international competitions came in the Euro 1992. The Danes initially failed to qualify, as they trailed Yugoslavia in their qualifying group. Michael Laudrup, the star of the team, decided to quit the national team during the qualification matches, following tactical differences with Coach Nielsen. However, due to international sanctions resulting from the Yugoslav wars, Yugoslavia was barred from the tournament, and Denmark entered as the second-placed team in its group. Contrary to popular belief the team did not rally home from seaside vacations to compete, as the majority of players were already assembled to play a friendly match with the CIS when Denmark officially got the spot at the tournament.

Relying heavily on goalkeeper Peter Schmeichel and his defense, as well as creative spark Brian Laudrup, the Danish team created one of the biggest surprises in the event's history, as they went on to win the European Championship trophy under coach Richard Møller Nielsen's defensive playing style. Advancing from the group stage ahead of England and France, Denmark beat the Dutch defending Euro 1988 champions on penalties in the semi-final, and with the 2-0 win against reigning 1990 FIFA World Cup champions Germany in the final, Denmark had won its first trophy.