After a short time at Portuguese club Madeira, where he was fired after a few months, and a short return at Vålerenga, he became head coach of IFK Göteborg from 1985 to 1987. In his last year, Göteborg again won the UEFA Cup 1986–87. After this Bengtsson left the club for Panathinaikos FC, where he worked for the season 1988–1989.
In December 1989 he was appointed head coach of Feyenoord, next to junior coach Pim Verbeek. Feyenoord had made a bad start of the season and was at the bottom of the charts. The stubborn Bengtsson couldn't make any impression in Rotterdam. He tried to get the team together with fine systems and endless conditional trainings, but failed. That year Feyenoord finished 11th. In his second season at Feyenoord, the results again were disappointing. In march 1991 he, and second coach Verbeek, were fired, and replaced by Wim Jansen.
In 2001 Bengtsson became coach of the Norwegian Molde. At his appointment he told the press Molde would become the biggest club in Norway in 2005. In May 2003 he was fired after a bad start of the season. When he left the club, he said that he felt there was not enough progression in the club. After this he retired from professional football.