His long-awaited first major title came in the 2004 World Grand Prix, where he beat Warriner in the final. His success in the non-televised PDC Pro Tour events saw his world ranking continue to rise. By April 2005 he had reached world number one – a position he held (with a brief interruption in June 2006) for almost two years. Soon after becoming World Number One he added the 2005 World Matchplay title in Blackpool, beating John Part in the final, ending the match on a maximum 170 checkout. He also reached the final of the 2005 World Grand Prix before losing 1–7 to Phil Taylor. This good form made him second favourite in the 2006 World Championship, only behind Taylor in terms of odds. Unfortunately for Lloyd, he was knocked out in the first round by qualifier Gary Welding, having led 2–0 in the best-of-five match. He reached the final of the International Darts League in the Netherlands in May 2006, losing to Raymond van Barneveld.