Bulgaria finished second in the qualifying group for Euro 1996 after the first place was taken by the eventual winners, Germany. Stoichkov scored 10 goals for his team during the qualifiers, as Bulgaria qualified as one of the best 6 runners-up. In the first match against Germany in Sofia, Bulgaria were 2–0 down at half-time. Stoichkov equalized with two goals from penalties and Emil Kostadinov also scored for a 3–2 win. Bulgaria lost the second match in Germany 3–1.
During the finals, Bulgaria lost 3–1 in the decisive group match against a very strong France side (the future World Champions); at the same time, in the other match, Spain won 2–1 late on against Romania and so the Bulgarians went out. In that tournament, Stoichkov scored 3 goals in 3 matches, and another goal against Spain was disallowed for offside, though action replays show that he was actually on-side. Stoitchkov was the only player to score from a free kick (against France) in this tournament.
He was also part of the squad that was eliminated in the first round of the 1998 World Cup. Bulgaria was not nearly as strong as in previous years, earning only one point in a 0–0 draw against Paraguay and scoring only one goal through Kostadinov in a 6–1 defeat by Spain in the so-called "Group of Death".
Stoichkov retired from internationals in 1999 with 37 goals in 83 appearances. Subsequently he was the coach of the Bulgarian national team from 2004 to April 2007.
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