Pearce spent 12 years at Forest, most of it as club captain. During his playing career, he won two League Cups and the Full Members Cup, while also scoring from a free-kick in the 1991 FA Cup final, when Forest were beaten by Tottenham Hotspur. In his time at the City Ground, Pearce was one of the Forest players who had to cope with the horrors of the Hillsborough disaster during the opening minutes of their FA Cup semi-final against Liverpool. Pearce played in the rescheduled match at Old Trafford, which Liverpool won 3–1. He helped them finish third in the league that year (as they had done a year earlier), and also contributed to their victories in the League Cup and Full Members Cup. He helped them retain the League Cup a year later and in 1991 he had his first crack at the FA Cup, and despite giving Forest an early lead against Tottenham in a match most remembered for the knee injury suffered by Pearce's opponent Paul Gascoigne, Pearce ended up on the losing side as Spurs came back to win 2–1. He missed out on a Wembley appearance the following season as Forest lost 1–0 to Manchester United in the 1992 League Cup final.