Nacional won its third copa Libertadores in 1988, beating Argentine side Newell's Old Boys 3–0 in the Estadio Centenario, with goals from Ernesto Vargas, Santiago Ostolaza and Hugo De León. That same year, Nacional would contest its third Intercontinental Cup. In a breath-taking final against Dutch side PSV Eindhoven coached by Guus Hiddink, Nacional would win in the penalty shootout after the game ended 2–2 with two goals by Ostolaza (the second one scored at the last minute of overtime). The next year, Nacional won its second Copa Interamericana, this time beating C.D. Olimpia from Honduras, and the Recopa Sudamericana, defeating Racing from Argentina.