In 1972, he lost his party's gubernatorial nomination to the [[Moderate Republican]], James Eubert "Jim" Holshouser. Jr. (1934-2013), who coincidentally had earlier succeeded Gardner as state party chairman.<ref>[http://www.ourcampaigns.com/RaceDetail.html?RaceID=66120 OurCampaigns: 1972]</ref> Holshouser and James Grubbs Martin (born 1935) were the only Republican governors of North Carolina in the 20th century.
In 1988, more than two decades after his congressional service, Gardner defeated Democrat Anthony Eden "Tony" Rand (1939-2020)<ref>[http{{cite web|url=https://www.ourcampaigns.com/RaceDetail.html?RaceID=26801 |title=NC Lt. Gov.|publisher=OurCampaigns: 1988]|accessdate=August 3, 2021}}</ref> and became the first Republican elected lieutenant governor since1896. He served during James Martin's second term as governor, 1989 to 1993. In response to the election of Gardner, the Democrats in the state legislature transferred many of the powers of the lieutenant governor to the President Pro Tempore of the state Senate.<ref>
==Later years==
In September 2011, Gardner endorsed the ultimately unsuccessful candidacy of Wake County Commissioner Tony Gurley for lieutenant governor.
<ref>Rob Christensen, "Gardner backs Gurley for lt. gov.," ''Charlotte News and Observer,'' September 26, 2011.> In January 2013, Gardner was the master of ceremonies at the inauguration of newly elected Republican Governor [[Pat McCrory|Patrick Lloyd "Pat" McCrory]] and Lieutenant Governor [[Dan Forest]].<ref>"Jim Gardner gets another day in the sun," ''Charlotte News and Observer,'' January 6, 2013.</ref> The ceremony celebrated the return of Republicans to the governor's office for the first time since Gardner's defeat in 1992. Forest, the son of former [[[Charlotte, North Carolina|Charlotte]] [[Mayor]] Sue Wilkins Myrick, also became the first Republican lieutenant governor since Gardner.
After taking office, Governor McCrory appointed the then 79-year-old Gardner as the chairman of the North Carolina Alcoholic Beverage Control Commission.<ref>"McCrory appointed ex-Lt. Gov. Gardner to ABC chair," wral.com, February 2, 2013.</ref>