In 1991 he was named MVP of the NHL All Star Game, being one of only four players (at that time) to ever score 4 goals in a single All-Star matchup.

[2] Damphousse spent five seasons in Toronto before being traded to the Edmonton Oilers in 1991 in a deal which sent future Hall of Famers Grant Fuhr and Glenn Anderson to Toronto, while Edmonton received Damphousse, Peter Ing, Luke Richardson, Scott Thornton, cash, and future considerations in return.

Oilers' general manager Glen Sather said of Damphousse at that time that among French-Canadian players, only Mario Lemieux was more skilled offensively.

On August 27, 1992, Damphousse was dealt to his hometown team, the Montreal Canadiens (with a 4th round pick in the 1993 NHL entry draft), in exchange for Shayne Corson, Brent Gilchrist and Vladimir Vujtek.

Damphousse was a member of the National Hockey League Players' Association (NHLPA) executive committee, serving as vice president under Trevor Linden.