MacDonald started his career with St Johnstone but was snapped up by Rangers in November 1968 for £65,000. He quickly became a fans favourite at Ibrox as he demonstrated his passion for the blue jersey. He was instrumental in Rangers 1972 Cup Winners' Cup triumph, scoring against Rennes in the First Round. During his time at Rangers he played 503 games and scored 94 times and won 3 League Championship, 4 Scottish Cup and 4 League Cup medals. MacDonald joined Hearts for £30,000 in 1980.