Those departing Forest were striker Grant Holt to Shrewsbury Town, Northern Ireland international midfielder Sammy Clingan to Norwich City, Ghanaian international striker Junior Agogo to Egyptian side Zamalek Sporting Club, left-back Matt Lockwood to Colchester United and midfielder Kris Commons to Derby County.

Forest kicked off the 2008–09 season with a goalless home draw against Reading before suffering their first league defeat in the Championship in a 3–1 loss at Swansea City.

Forest picked up one point in five games during September in a 0–0 home draw against Charlton sandwiched by 2–1 loses to both Burnley and Preston, and losses at Plymouth and Sheffield Wednesday.

A further 0–0 away draw at relegation rivals Doncaster Rovers saw mass tabloid speculation that manager Colin Calderwood was set to be replaced by Billy Davies.

Forest then recorded an important victory away at Southampton, with defender Wes Morgan scoring his first goal of the season and Joe Garner chipping the goalkeeper from 35 yards.

Reserve-team manager John Pemberton took caretaker charge at Norwich City, which Forest won 3–2 to rise out of the relegation zone for the first time in three months; this game saw the end of Lee Camp's loan spell.

Davies watched the next match, against nouveau-riche Premier League side Manchester City in the FA Cup third round, which saw Forest won 3–0 with goals from strikers Nathan Tyson, Robert Earnshaw and Joe Garner.

A 2–0 home win Plymouth Argyle moved them into 20th before a big rival match in the FA Cup against Derby County at Pride Park, which ended 1–1,[9] with a replay arranged on 4 February at the City Ground.

However another three game losing streak to Watford, a 5–0 loss to Burnley and then a 1–0 defeat to Wolves thanks to a Michael Kightly goal saw Forest take another dramatic downturn and they slipped in the league table to the regulation place of 22nd.

Rob Earnshaw again showed his fantastic ability to score vital goals after grabbing an equaliser but with twelve minutes to go Forest went 2–1 down thanks to Dele Adebola.

After Kelvin Wilson was sent off early on, Forest's best chance fell to Joe Garner who fired over the crossbar and the Red's had to settle for a 0–0 draw that put them back into the drop zone on goal difference with Barnsley.

And the only goal from James Perch after 46 minutes gave Forest a well-deserved win sending them up to 20th and out the drop zone, however they could not be complacent yet as both Norwich City and Barnsley, the two teams behind them had games in hand.