In 1989, Congress under Rajiv Gandhi lost general elections and Natwar Singh was defeated from Mathura LS seat in Uttar Pradesh. In 1991, when P V Narasimha Rao became Prime Minister, Natwar Singh fel out with him and he along with Arjun Singh and N D Tiwari left Congress and formed a separate party named All India Indira Congress (Tiwari).
He returned to Congress once again in 1998 after Sonia Gandhi took over the reins of party in her own hands.
Sonia Gandhi rewarded Natwar Singh with a party ticket from Bharatpur . Natwar returned to 12th Lok Sabha in 1998.
Since the Congress was out of power, natwar had to sit in opposition and he lost 1999 Lok Sabha elections. In 2002, he was sent to Rajya Sabha by the party.