The 2016–17 season is Birmingham City Football Club's 114th season in the English football league system and sixth consecutive season in the second-tier Championship. It covers the period from 1 July 2016 to 30 June 2017.

With the team lying just outside the play-off positions, and two days after three new directors had joined the board, manager Gary Rowett and his backroom staff were sacked on 14 December 2016. Later that day, former West Ham United and Watford manager Gianfranco Zola was announced as Rowett's successor.

As with all Football League clubs, the first team also competed in the FA Cup and EFL Cup. They were eliminated in the third round of the former by Newcastle United after a replay and in the first round of the latter by Oxford United.

Under the management of Gary Rowett, Birmingham City spent most of the 2015–16 Football League Championship season in or around the play-off positions, but they won just once in the last 12 matches of the campaign, and finished in the lowest position they had occupied all season: tenth. With 16 wins and 15 draws, their finishing position and record was identical to that of 2014–15, albeit with 15 fewer goals conceded.

First-team players released at the end of the 2015–16 season included Mark Duffy, Neal Eardley, David Edgar, Lee Novak, Wes Thomas. and the youth product Mitch Hancox, who had been with the club for fourteen years. Free-transfer signings for 2016–17 included previous loanee Robert Tesche from Nottingham Forest and young Liverpool defender Daniel Cleary. Undisclosed fees were paid for Dundee's attacking player Greg Stewart, young forward Che Adams from Sheffield United, and Derby County defender Ryan Shotton, who had been on loan at Birmingham in 2015–16. The terms of Huddersfield Town striker James Vaughan's loan agreement required its conversion to a permanent contract, but he had not established himself as a first-team player and was allowed to leave. Birmingham made two loan signings, both for the first half of the season: Burnley striker Lukas Jutkiewicz and Bournemouth left back Rhoys Wiggins. Attacking midfielder Andrew Shinnie and striker Nicolai Brock-Madsen left on season-long loans, and young midfielders Koby Arthur and Charlee Adams and striker Alex Jones went out on loan until January.

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