They competed in the NRL's 2008 Telstra Premiership and finished the regular season 7th out of 16 teams, being knocked out in the finals by eventual premiers, the Manly-Warringah Sea Eagles.

The club received a boost in May when former Union and League (Brisbane Broncos) star Wendell Sailor joined the team after a 2-year ban from professional sport in Australia due to his cocaine controversy.

On 23 May, the Dragons recorded their first back-to-back wins of the season when they defeated the Manly-Warringah Sea Eagles at Brookvale Oval with a final score of 20–18.

On 15 July, it was announced that captain Mark Gasnier would not be returning after the end of the 2008 season to join the Stade Français Rugby Union team in France.

The club went on a 'signing spree' purchasing Neville Costigan, Darius Boyd and Luke Priddis among others, but lost flyer Josh Morris (Bulldogs), Mark Gasnier (French Rugby), Jason Ryles (French league), Rangi Chase (ESL), Lagi Setu (Broncos) and Simon Woolford & Kirk Reynoldson with retirement.

Gains Losses St George Illawarra Dragons has 31 signed players in first grade that play in the main competition.

Jardine Bobongie – LK Rangi Chase – SR Matt Cooper – CE Ben Creagh – SR Ben Ellis – HK Joe Falemaka – PR Mark Gasnier (captain) – CE Jon Green – PR Mark Hendy – CE Ben Hornby – HB Dan Hunt – PR Michael Lett – WG Brett Morris – FB Josh Morris – WG Jason Nightingale – WG Justin Poore – PR Matt Prior – SR Alex Ranieri – HK Kirk Reynoldson – SR Jason Ryles – PR Jarrod Saffy – SR Frank Samia – CE Wendell Sailor – WG Beau Scott – SR Lagi Setu – LK Jamie Soward – FE Chase Stanley – CE Ricky Thorby – PR Stuart Webb – LK Simon Woolford – HK Dean Young – HK Line up for the Qualifying Finals vs. Manly-Warringah Sea Eagles: Saturday, 13 September 2008 at 8:30pm AEST at Brookvale Oval, Sydney.

Before the regular season began, the Dragons won a Toyota Cup Trial match against the Bulldogs down at WIN Stadium in Wollongong.