March 2010, when he made his 40th appearance for Blackburn against Burnley in the East Lancashire derby at Turf Moor in the 1–0 victory, he caused controversy when he looked like he had dived inside Burnley's penalty area, consequently by winning a penalty after taking the ball round Burnley goalkeeper Brian Jensen. Subsequently, the penalty was scored by David Dunn. On 29 March 2010, Olsson admitted to the dive, Rovers manager, Sam Allardyce defended Olsson by saying he was his man of the match and created havoc and chaos in and around the eighteen yard box all match. In June 2010, Olsson signed a new five-year-deal at Blackburn Rovers that would keep him at the club until summer 2015. At the start of the 2010–11 season, Olsson acquired the number three jersey by manager Sam Allardyce, which he had for most of pre-season. He featured in Rovers' opening 2010–11 Premier League match against Everton at Ewood Park on 14 August 2010, playing the full 90 minutes on the left-wing in a 1–0 victory. He scored his first league goal for Blackburn against Liverpool inside 32 minutes on 5 January 2011 in a 3–1 victory at Ewood Park. On 12 February 2011, Olsson made his 50th Premier League appearance for the club when he started at left-back against Newcastle United playing the full 90 minutes in a 0–0 draw. On 30 April 2011, he scored with a left-foot shot on 20 minutes against local rivals Bolton Wanderers at home. On 22 May, Olsson started and played the full 90 minutes against Wolverhampton Wanderers in a 3–2 win at Molineux which kept both teams up for another season in the Premier League. At the end of the season, he made 32 appearances for Rovers in total and scored two goals in all competitions. Now considered a key player, Olsson started off the season at left back covering for Gaël Givet who himself was covering for various injuries at centre back. Olsson provided an assist in a 4–3 victory over Arsenal. After running from the halfway line to the by-line, he pulled back a cross for Arsenal's Laurent Koscielny to score an own goal. After helping Sweden qualify for UEFA Euro 2012, Olsson returned from international duty to put in a Man of the Match performance on the left wing against Queens Park Rangers in a 1–1 draw at Loftus Road. At the