The 2016–17 season was Oxford United's first season back in League One after gaining promotion the previous season, and their 123rd year in existence. As well as competing in League One, the club also participated in the FA Cup, League Cup and League Trophy.

Oxford lost three key players in the close season, Kemar Roofe departing for Leeds for a club record of £3m, Callum O'Dowda (less expectedly) to Bristol City for around £1m, and striker Danny Hylton who declined a contract renewal offer and joined Luton Town in League Two. United narrowly failed to sign Matty Taylor to replace the goal-scoring potential of these three players, but Chris Maguire, after protracted negotiations, signed a one-year contract extension and strikers Wes Thomas and Kane Hemmings were brought in to boost the forward line, the latter for a £250,000 fee. Manager Michael Appleton's first summer signing was goalkeeper Simon Eastwood. Eastwood had previously been on Oxford's books as cover for Ryan Clarke in 2010–11 but had failed to make an appearance. Another returning player was Rob Hall, a former loanee signed from Bolton Wanderers despite carrying a long-term injury. United spent what was believed to be a club record fee to secure the services of winger Marvin Johson from Motherwell, and the defence was bolstered by the arrival of Christian Ribeiro, Aaron Martin and Curtis Nelson. Young midfielder John Lundstram was appointed captain to replace defender Jake Wright (who joined former Oxford manager Chris Wilder at eventual champions Sheffield United) and his deputy Johnny Mullins (who was not offered a new contract and joined team-mate Hylton at Luton Town). Notable loanees from Premier League sides included Dan Crowley from Arsenal, Toni Martínez from West Ham and Conor McAleny from Everton.

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