In 1986, Fenech had only two bouts, but they were both major fights: He won a 10-round, non-title fight decision over former WBC bantamweight and future super bantamweight world champion Daniel Zaragoza, and he retained his IBF world championship with a TKO in round 14 over American Steve McCrory in a bout dubbed "Olympic Revenge" by Fenech's then promoter Bill Mordy. McCrory, like Fenech, had competed in the flyweight division at the Los Angeles Olympics, winning the Gold Medal by defeating Redžep Redžepovski in the final. After the bout at the Sydney Entertainment Centre, McCrory graciously allowed the Australian to wear his Olympic Gold Medal to show off to the crowd. During the fight with McCrory, Fenech wore green and red trunks, the colours of the South Sydney Rabbitohs rugby league team with their tough forward Mario Fenech (no relation) in his corner. McCrory was trained out of the Kronk Gym in Detroit.
Fenech was inducted into the Sport Australia Hall of Fame in 1986.