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He stayed at Wolves for more than eight years coaching the U15's/U16's on a part-time basis, working alongside Welsh former International manager Mike Smith. During this period Vaughan coached a number of players who went on to become professional footballers – most notably Lee Naylor, Joleon Lescott, JJ Milligan, Scot Brown. Leon Clarke and Micheal Townsend.

In May 2013 Vaughan joined Texas Rush in The Woodlands, North of Houston where he is currently Director Of Coaching the senior boys and in this time he passed his USSF "B" coaching licence. In 2017 Texas Rush changed their name to Dynamo Dash Youth Soccer Club. Vaughan is now settled in the Tomball, Houston, Texas area.

After one more season at Wolves when they finished 12th in Division 2, Vaughan was released. He moved to Hereford United where he broke his leg just 10 minutes into his debut for the club against Chelsea. He went on to make just 13 appearances for Hereford scoring 1 goal against Crewe Alexandra.

In 2010 Vaughan signed a three-year contract with Albion Hurricanes FC in Houston (Texas) as Boys Director.

In 2001 Vaughan moved to Shrewsbury Town working as part-time under 16's coach, and the following season he was employed on a full-time basis as Youth team Coach of the U17's/U19's (this was looking after 24 scholars on a day-to-day basis). It was in 2005 he became Acting Head of Youth which was overlooking age groups from under 9 – 16 whilst still coaching the full-time scholars. During this time he also did his FA Conversion Badge (UEFA "A" Coaching Licence) and UEFA "A" Full Licence Badge. It was then after a year in charge that he was given the role of Head of Youth Development which he kept until 2010. He helped in the development of fourteen players including Andre Gray (Watford), Connor Goldson (Glasgow Rangers), Jon Taylor (Doncaster Rovers), Ross Draper (Ross County) and Tom Bradshaw (Millwall), all went on to become professional soccer players. Two have gone on to represent their country at international level, David Edwards (Wolverhampton Wanderers & Wales) and goalkeeper Joe Hart (Manchester City & England). During that time, he qualified with the English Football Association in getting his Youth Coaches Course 17to 21 years of age and also UEFA "A" Refresher. From 2003 to 2010 Vaughan was invited by former manager Len Ashurst to coach at the Premier League exit trial, for under 18/19 scholars who were released by their clubs.

Vaughan was at Hereford United when he took his FA Preliminary Badge, and then passed his FA Advanced Coaching Licence at Lilleshall. It wasn't until 1993 when he was offered a part-time coaching role at Wolverhampton Wanderers under the guidance of Robert Kelly.

In 1987, he had loan spell at Reading, making 5 appearances and scoring 1 goal (v Sheffield United). He moved to Wolverhampton Wanderers on a permanent basis the same year and went on to make 93 appearances for the club (10 goals). Vaughan enjoyed a successful time at Wolves in 1988, winning promotion from the Division 4 as champions. The same year they beat Burnley (2–0) in the 1988 Associate Members' Cup Final at Wembley. Wolves enjoyed another successful season in 1989 winning promotion from Division 3 (again as champions).

His stay at Newport ended in 1983 when he joined Cardiff City (managed by ex Newport boss Ashurst) in a five player transfer. He went on to make 149 professional appearances for Cardiff scoring 42 goals.

In 1982 Vaughan made his Welsh International debut, coming on as a second-half substitute for Peter Nicholas in a 4–4 draw in Yugoslavia. The following year he made his full international debut in a 1–1 draw against Brazil at Ninian Park. He also played against Norway, Romania, Bulgaria, Yugoslavia, Northern Ireland, Israel and Spain under the leadership of manager Mike England.

In 1980, he played a pivotal role in helping Newport County to double success, by achieving promotion from the old Division 4 and winning the Welsh Cup against Shrewsbury Town (5–1 on aggregate). The following season County entered the European Cup Winners Cup, reaching the quarter-final losing 2–3 to Carl Zeiss Jena. He made two Welsh Under 21 National appearances as captain, against France (2–0) and the Netherlands (0–0).

Vaughan started his playing career at his local professional side Newport County making 224 appearances and scoring 32 goals for the club. After leaving Caerleon Comprehensive School in 1975 he made his Football league debut against Rochdale as a left back at the age of 17 by manager Jimmy Scoular. The following week he played against Bournemouth in the FA Cup – both games finished goalless. His performances in both games were enough to get him two Welsh Youth National Team appearances against England (Wales were beat 2–3 on aggregate). Having signed as a professional in 1977 it was Newport County manager Len Ashurst that had the biggest influence on Vaughan's career. A manager that believed in him, and changed him into a centre midfield player during the most successful period in the club's long history.

Vaughan's professional soccer career started in 1975 and ended in 1992, making 484 League appearances and scoring 86 goals. These statistics do not include cup matches. He played part-time and managed a number of part-time soccer clubs, playing his last game at the age of 40.

Nigel Mark Vaughan (born 20 May 1959 in Caerleon) is a Welsh former professional footballer and Wales international. He gained ten international caps during his career.