Following a series of disagreements with manager Dave Sexton over his lifestyle (during which supporters picketed Stamford Bridge to demand he stay) Osgood, along with several of his teammates, was dropped from the squad and placed on the transfer list. He was sold to Southampton in March 1974 for a club-record £275,000. During his time on the south coast, he won the FA Cup again in 1976 after a 1–0 victory over Manchester United. He left Southampton in November 1977, shortly before the club were promoted. He scored 36 goals in 161 games for the Saints. Towards the end of his career, he also had a brief loan spell at Norwich City.
