The 1997–98 NBA season was the Raptors' third season in the National Basketball Association. The Raptors selected high school star Tracy McGrady with the ninth overall pick in the 1997 NBA draft, and acquired second-year forward John Wallace from the New York Knicks during the offseason. However, the Raptors struggled posting a 17-game losing streak early in the season. Midway through the season, Damon Stoudamire was traded along with Walt Williams, and Carlos Rogers to the Portland Trail Blazers for Kenny Anderson, Gary Trent and rookie Alvin Williams. However, Anderson refused to play for the Canadian team and was dealt along with Popeye Jones, and Žan Tabak to the Boston Celtics for rookie Chauncey Billups and Dee Brown.

After an 11–38 start, head coach Darrell Walker was fired and replaced with Butch Carter for the remainder of the season, as the Raptors finished last place in the Central Division with a franchise worst record of 16–66. Following the season, second-year star Marcus Camby was traded to the New York Knicks, Billups was traded to the Denver Nuggets, Trent signed as a free agent with the Dallas Mavericks, Oliver Miller was released, and Sharone Wright retired after playing just four seasons in the NBA.

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