During the off-season, the team hired Mike Woodson as head coach and acquired All-Star forward Antoine Walker, and Tony Delk from the Dallas Mavericks, Al Harrington from the Indiana Pacers, and Predrag Drobnjak from the expansion Charlotte Bobcats.
The team also signed free agents Kenny Anderson, re-signed Jon Barry and former Hawks forward Kevin Willis.
At midseason, Walker was eventually traded back to his former team, the Boston Celtics for All-Star guard Gary Payton, Tom Gugliotta and Michael Stewart, while Anderson was released to free agency and signed with the Los Angeles Clippers.
Despite their awful season, Smith won the Slam Dunk Contest during the All-Star Weekend in Denver, as he and Childress both made the NBA All-Rookie Second Team.
Following the season, second-year guard Boris Diaw was traded to the Phoenix Suns for Joe Johnson, Willis and Gugliotta both retired, but Willis would come back for one more season with the Dallas Mavericks before retiring again, and Drobnjak and Stewart were both released to free agency.