In 1980, he returned to Bullets, who had since re-located to Washington, D.C., where he would coach for six seasons. He would end his coaching career by returning to Clippers, who had relocated to Los Angeles.
In 1980, Sports Illustrated suggested that Shue "might be the reigning expert on the rehabilitation of players, judging from his penchant for taking in the league's rejects and wayward souls." In 2009, Fox Sports listed him as one of ten great players who became great coaches, noting that Shue "specialized in improving the fortunes of bad ball clubs, which is the only reason why he lost so many games." Although his lifelong tendency to seek out challenging situations to turnaround has resulted in less wins, trophies, and accolades as both a player and a coach; in 1987, he remarked, "I think when you come into any losing situation, the first thing you have to bring with you is a positive attitude, one that your players can begin to believe in. Not that I ignore problems. I'm both optimistic and realistic. I have always been honest. I don't try to kid people." In 1989, the LA Times stated, "Gene Shue has proven to be one of the best coaches the NBA has ever had."