On 22 May 2018, Favre was appointed as manager of Borussia Dortmund, with a contract lasting until 30 June 2020. During his debut season, he became the first-ever manager to remain unbeaten in his first 15 Bundesliga matches with the club. This includes a 4–1 win against RB Leipzig, a 7–0 win against 1. FC Nürnberg, and a 4–0 win against Atlético Madrid. On 3 August 2019, Dortmund won the German Super Cup. He was sacked on 13 December 2020 after a string of poor results, including a 5–1 thumping at home against newly-promoted VfB Stuttgart. Favre finished with a record of 67 wins, 17 draws, and 23 losses.