| In 1973, MacDougall moved to Norwich City, where he was reunited with John Bond, who had managed him at Bournemouth, together with several of his former Dean Court colleagues. He also linked up again with Phil Boyer, who had played alongside MacDougall at both Bournemouth and York.
At the end of the 1973–74 season, the Canaries were relegated to the Second Division, although in the following season they not only regained their First Division status but also reached the final of the League Cup.
In the semi-final, Norwich defeated MacDougall's former club Manchester United (who were also spending a season in the Second Division). The final against Aston Villa was a tense, scrappy affair in which MacDougall had few scoring opportunities, with Villa winning by a single goal. It would be MacDougall's only cup final appearance.
At the end of the 1974–75 season, MacDougall was given his only run in the Scottish national side. He made a scoring debut against Sweden, and managed three goals in seven games before being passed over as competition for places in the Scottish team was fairly intense at this time.
In the 1975–76 season, Norwich were able to maintain their First Division place, with MacDougall contributing 23 goals, making him the division's top scorer. Highlights include two hat-tricks in the space of four games.
Despite this, however, in the autumn of 1976 MacDougall moved on to Second Division Southampton to work with manager Lawrie McMenemy, who was in the process of rebuilding the side, for £50,000. Kevin Reeves was signed for the same sum from Bournemouth to replace him.
Whilst at Bournemouth, MacDougall started his own business – a sports shop in Boscombe called "Ted MacDougall Sports", with another branch opened in Poole later on. The Boscombe branch was given a grand opening by Geoff Hurst.
He was for a period the landlord of the Mill Arms public house at Dunbridge, Hampshire.
When he had finished playing at non-League level, he went to live in Vancouver, Canada, where he became a successful property developer.
MacDougall moved to in Atlanta, United States, where he was youth Director of Coaching with the Atlanta Silverbacks. In 2009, he created his own club, Atlanta Spurs FC, alongside Paul Smith, who also played in England with Nottingham Forest. One of MacDougall's youth teams, the U14 boys, won the State Cup and made it to Regionals but lost in the quarter-finals.
In July 2013 the new south stand at the Dean Court was named after MacDougall in honour to his service at the club.
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