They were coming off a 30–44–8 record, earning 68 points in the 1995–96 season, which led them to failing to qualify for the post-season for the 4th time in a row.
The main reason for the Oilers' turn-around was their solid goaltending and defensive hockey, only allowing 247 goals, 57 fewer than the previous season.
In goal, Curtis Joseph got the majority of playing time, winning 32 games while posting a 2.93 GAA and a .907 save percentage.
Divisions: CEN – Central, PAC – Pacific bold – Qualified for playoffs; p – Won Presidents' Trophy
Todd Marchant turned out to be the hero, scoring for the Oilers in the 1st overtime, as Edmonton completed the upset, defeating the Stars in 7 games.
In the 2nd round, Edmonton faced the defending Stanley Cup champions, the Colorado Avalanche, who won the Pacific Division and had 26 more points than the Oilers during the season.