The Jets defeated the Calgary Flames in the first round but lost the Division Final to the Edmonton Oilers.
After a poor 1985–86 season, in which the Jets fired head coach Barry Long and replaced him on an interim basis with general manager John Ferguson, the team hired Dan Maloney to become the new head coach on June 20, 1986.
Elynuik spent the 1985–86 season with the Prince Albert Raiders, scoring 53 goals and 106 points in 68 games.
In the second round, Winnipeg selected defenseman Teppo Numminen from Tappara Tampere of the SM-liiga.
Penney had a 6–8–2 record with a 4.36 GAA with Montreal during the 1985–86 season as the back-up to Patrick Roy.