Smith began coaching in 1978, coaching the Newtown Jets under 23s team. He then joined the South Sydney Rabbitohs in 1980, also as under-23's coach. He stayed there until the end of 1982 coaching the reserve grade team in that season. Smith began coaching first grade rugby league in the NSWRL competition in 1984, where he became coach of the Illawarra Steelers, where he remained until the end of 1987 season. While coaching Illawarra in 1986, Smith proposed using two referees. This did eventuate in 2009. From 1988 until 1990, Smith was coach of Hull F.C. in England's Championship., In season 1988-89 Hull progressed to the Premiership Final at Old Trafford ultimately losing to Widnes. Hull led the competition when Smith left in January 1991 and went on to win the Premiership Final in May. Smith returned to Australia to coach the St George Dragons for the 1991 season. He took the club to consecutive Grand Finals in 1992 and 1993, losing both to Wayne Bennett's Brisbane Broncos. Smith would remain at St George until 1995. Smith returned to England for two seasons 1995 and 1996 to coach the Bradford Bulls to the 1996 Challenge Cup Final at Wembley Stadium, London in front of 78,550 fans. For Smith it would be another final loss as Bradford went down to St. Helens 32-40. Bradford Bulls would go on to win major trophies across the next decade including Challenge Cups, Grand Final Premierships and World Club Challenge Finals. Returning to Australia, from 1997 until mid-2006, Smith coached the Parramatta Eels. He took them to the 2001 NRL Grand Final in what was the Eels first Grand Final since their 4-2 win over Canterbury-Bankstown in 1986. Facing the Eels would be the Andrew Johns led Newcastle Knights. The Eels, minor premiers in 2001, were raging hot favorites to win the Grand Final but four converted and unanswered tries to the Knights in the first 24 minutes of the game was too big a lead for Parramatta to overcome. The Knights would go on to hand Smith his third Grand Final loss with a 30-24 win in front of 90,414 at Stadium Australia. Smith became the longest-serving coach for the Parramatta Eels before he resigned as coach on 15 May 2006, with assistant coach Jason Taylor taking over as caretaker coach for the remainder of the season. During this period Parramatta won eight club championships and made seven appearances in the playoff series. Smith also won the Dally M coach of the year in 1991. Smith had a short spell with his former club Bradford in an advisory role during the summer of 2006. In 2007, Smith took up coaching duties with the Newcastle Knights. In July 2009, he signed a deal for the 2010 with the Sydney Roosters and obtained a release from the Knights. On 15 August 2009 Smith effectively quit the Knights, with understudy Rick Stone to act as caretaker coach for the remainder of the season. For the 2010 NRL season Smith took over as Roosters coach from Brad Fittler who had been sacked the previous year. At the 2010 Dally M Awards Smith was named coach of the year. The Roosters reached the 2010 NRL Grand Final but were defeated by Wayne Bennett's St. George Illawarra Dragons. Smith also worked as an assistant coach for Steve McNamara for the English team in their 2010 Four Nations campaign. Smith was sacked by the club with a year still remaining on his contract at the end of the 2012 NRL season, after the Roosters finished in 13th place with an 8-15-1 record. In 2013 he was briefly the head coach of the USA. On 31 May 2015 Wakefield Trinity Wildcats announced on Sky Sports coverage of the Magic Weekend ahead of their game versus Castleford Tigers that Smith had agreed to take up the position of head coach. Former coach James Webster put Smith in touch with the club via text message. He resigned from Wakefield on 8 March 2016. In 2015, Smith became a consultant at the Serbian Rugby League and assisted the Serbian national team in their 2016 Qualifiers in a bid to qualify for their first ever Rugby League World Cup.