The season was the first under new manager Mick McCarthy who replaced Glenn Hoddle after the latter resigned suddenly in July 2006.
[1] McCarthy's appointment coincided with a new approach by the club after their parachute payments stemming from their Premier League relegation two years earlier ceased.
Their promotion hopes were ended by local rivals West Bromwich Albion - whom they met a record five times during the campaign - who beat them in both legs of the play-off semi finals to win 4–2 on aggregate.
The provisional fixture list was released on 22 June 2006, but was subject to change in the event of matches being selected for television coverage or police concerns.
The season saw new home and away kits, both manufactured by Le Coq Sportif.