The 1996–97 NBA season was the Pistons' 49th season in the National Basketball Association, and 40th season in the city of Detroit. During the offseason, the Pistons re-signed free agent Rick Mahorn, who was a member of the championship team in the 1989 NBA Finals. The team also acquired Stacey Augmon and Grant Long from the Atlanta Hawks, but later on sent Augmon to the Portland Trail Blazers for Aaron McKie at midseason. The Pistons got off to a fast start winning ten of their first eleven games on their way to a 20–4 start. However, they went 34–24 for the rest of the season finishing third in the Central Division with a 54–28 record. Grant Hill averaged 21.4 points, 9.0 rebounds, 7.3 assists and 1.8 steals per game, while finishing third in MVP voting behind Karl Malone and Michael Jordan. Hill along with Joe Dumars, and head coach Doug Collins represented the Eastern Conference during the 1997 NBA All-Star Game.

In the first round of the playoffs, the Pistons would lose in five games to the Atlanta Hawks after taking a 2–1 series lead. Following the season, Otis Thorpe was traded to the Vancouver Grizzlies, Terry Mills signed as a free agent with the Miami Heat, and Michael Curry signed with the Milwaukee Bucks.