His influence on the game of football in Yugoslavia is huge as an entire generation of coaches including Ćiro Blažević, Ivica Osim, Toza Veselinović, etc. came up under his tutelage. In addition to admirers, Miljanić has his share of detractors who feel his trademark cautious and defensive tactics as well as reliance on older players contributed to the Yugoslav national team's poor results and unattractive play throughout the 1970s and 1980s.
During the summer transfer window, the club's iconic president Santiago Bernabéu Yeste felt it was time for major change, signing Miljan Miljanić as the new head coach of Real Madrid on 5 July 1974. The Serb's only condition was that he be allowed to bring along compatriot Srećko "Felix" Radišić as fitness coach. Radišić thus became the first fitness coach in club's history. Others in Miljanić's coaching staff were the club-assigned goalkeeping coach Juan Santisteban and assistant coach Antonio Ruiz.
Miljanić initiated many innovative changes in the training methods at Real. Insisting on top physical and tactical preparation, he increased the number of daily training sessions from one to three, which initially cause an outrage. He insisted on players not having more than two touches on the ball, and had them perfect the long pass game with the entire team functioning as a precise mechanism. He also moved Pirri from his midfield role into the sweeper defensive role while the offensive movement usually converged with crosses for target forwards Santillana and new signing from Espanyol Roberto Martínez. Furthermore, Miljanić had at his disposal goalkeeper Miguel Ángel, defensive midfielder Vicente del Bosque, veteran right winger Amancio Amaro, German midfielder Günter Netzer, newly signed defenceman from Bayern Paul Breitner, and young defender from the youth system José Antonio Camacho. Despite facing fan criticism over unattractive play, Real won the league and cup double in his first season as coach while in the Cup Winners' Cup they got eliminated at the quarterfinal stage on penalties by Miljanić's former team Red Star Belgrade. The tie took place over two legs in March 1975, and Miljanić somewhat controversially decided not to travel to Belgrade for the return leg because he couldn't bear to lead the team against his former side, saying: "I can not betray my heart". Instead, he invited journalists to watch the game with him on television in Madrid. Going into the return leg Real had the 2-0 lead from the first leg, but led by Antonio Ruiz who stepped in for Miljanić that night, los merenegues lost 2-0 in Belgrade and then got eliminated in the penalty shootout.
After ending the 1976-77 season without silverware, Miljanić started his fourth campaign as Real's coach in September 1977. However, after losing the opening match of the league season to Salamanca 1-2, Miljanić resigned his post.
He died on 13 January 2012, aged 81, in Belgrade, Serbia after suffering from the Alzheimer's disease for several years. Mourning the loss of the club's former great, on 14 January, Real Madrid side coached by José Mourinho played their away league match at Real Mallorca with Madrid players wearing black armbands.