Celtic started the 2007–08 season looking to retain the Scottish Premier League title and the Scottish Cup. They also competed in the Scottish League Cup. The team accepted an invitation to take part in the annual Major League Soccer All-Star Game for 2007, as part of a pre-season tour of the United States, Switzerland and England. On 9 October, Celtic opened their new training facilities at Lennoxtown.

Celtic started the season with a scoreless draw at Celtic Park against Kilmarnock. They then won their next five league matches scoring 12 goals in 6 consecutive matches and topped the league for most of the first half of the season. At the end of 2007 Celtic were still on top of the SPL standings. The Old Firm derby on 2 January 2008 and a match against Motherwell were postponed due to the death of former Celtic player and Motherwell captain Phil O'Donnell, who died on 29 December. During the break in fixtures, the team slipped to second place behind Rangers. Celtic kept in close touch with Rangers until the 2nd Old Firm derby on 31 March 2008 at Ibrox. In contrast to the 1st Old Firm game at Ibrox in September, in which Rangers coasted to a 3-0 win, this was a close game which finished 1-0 to Rangers, courtesy of a Kevin Thomson goal just before half-time. This put Rangers 7 points clear at the top of the SPL. Celtic suffered another set-back when they lost their next game at home to Motherwell by the same scoreline. With their closest rivals 7 points ahead, and with a game in hand, coupled with the success Rangers were enjoying in all competitions, many fans began to doubt Gordon Strachan, a doubt which was clearly expressed throughout Celtic Park during the game against Motherwell, when Starchan decided to take off Scott McDonald, the club's leading goalscorer for Georgios Samaras in the final 15 minutes.

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