In June 2007 he became manager of Glentoran in his native Belfast, where he stayed for three seasons, guiding the club to the IFA Premiership title in 2008–09. He also coached his country's under-21 side. After McDonald was appointed manager of Glentoran, he started to bring in new faces. He signed Dungannon Swifts winger
David Scullion along with
Rory Hamill. McDonald also brought in young promising players, including
Daryl Fordyce, Philip Carson,
Matty Burrows, and
Shane McCabe. He also added goalkeeper Michael Dougherty as backup to Elliott Morris, and brought in Hearts defender Johnny Taylor. In his first full season as manager of the East Belfast club, McDonald led Glentoran to win the
County Antrim Shield over Crusaders. In McDonald's second season, he led the club to become
Irish Premiership champions after four years. During his second season McDonald continued to bring in new faces, after selling Michael Dougherty, McDonald brought in Dundela keeper James Taylor. In his third season in charge McDonald started by signing former Northern Ireland international
Keith Gillespie and Newry City player
Richard Clarke. But Glentoran went on a losing streak, and after a 6–0 home defeat to
Coleraine, fans turned against McDonald and calling for him to resign. McDonald stayed on until his side lost 2–0 to
Dungannon Swifts F.C. and McDonald resigned after the game. McDonald did not manage since resigning from Glentoran, although he was linked with the
Ballymena United manager's job following the resignation of Roy Walker. McDonald also owned a trophy shop in Bangor. ==Death==