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The late 1980s and 1990s saw the production of a series of critically acclaimed and popular films such as Hidden Agenda, one of the rare films dealing with the political troubles in Northern Ireland, Carla's Song set partially in Nicaragua, and Land and Freedom examining the Republican resistance in the Spanish Civil War.
" Land and Freedom " contains a quintessentially Loach sequence of a 12 minute political discussion amongst villagers trying to decide whether or not a village's smallholdings should be collectivized.
During this period he was also awarded prizes at the Cannes Film Festival on three occasions.
He directed the Courtroom Drama reconstructions in the docu-film McLibel, concerning the longest libel trial in English history, which became a promotional disaster for the fast food chain.
Interspersed with overtly political films were smaller dramas such as Raining Stones a working class drama concerning an unemployed man's efforts to buy a communion dress for his young daughter.

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