The Phoenix Suns finished second in the Western Conference. They defeated the Los Angeles Lakers in the first round, but lost to the San Antonio Spurs in the Conference Semi-Finals.

On June 6, former TNT analyst and NBA three-point specialist, Steve Kerr, was appointed Suns' General Manager and President of Basketball Operations. Kerr is close to team owner Robert Sarver, and is also a part of the Sarver-led investment group that purchased the franchise from Jerry Colangelo.[citation needed]

On June 28, 2007, Spanish SG Rudy Fernández was taken 24th overall in the 2007 NBA Draft by the Suns, who subsequently traded the rights to the pick to the Portland Trail Blazers for cash. SF Alando Tucker of Wisconsin was taken with the 29th pick.

On July 11, 2007, the Suns signed former Orlando Magic SF Grant Hill on a 1-year $1.8 million deal with a player option for a second season at $2 million.

On July 20, 2007, the Suns traded power forward/center Kurt Thomas and two future first-round picks (2008 and 2010) to the Seattle SuperSonics in exchange for a trade exception of $8 million and a conditional second-round pick.

On August 27, 2007, Maryland guard D. J. Strawberry signed a two-year contract with the Suns that includes a guaranteed first year and a team option for the second season. Strawberry was drafted with the 59th selection in the second round of the 2007 NBA Draft; in the 2007 NBA Summer League, he averaged a league-best 6.4 assists.[citation needed]

On October 1, 2007, the Suns signed free agent center Brian Skinner to a one-year deal.

On February 6, 2008, the Suns traded four-time All-Star forward Shawn Marion, along with Marcus Banks, to the Miami Heat for Shaquille O'Neal.

On March 4th, 2008, the Suns signed guard Gordan Giricek.

On May 11th, 2008, after the Suns lost to the San Antonio Spurs 4-1 in the first round of the 2008 Western Conference Playoffs, Suns Head Coach Mike D'Antoni signed with the New York Knicks, replacing ousted Head Coach Isiah Thomas, who went 56-108 in two seasons with the Knicks.

On June 9th, 2008, Terry Porter was named Head Coach of the Phoenix Suns, succeeding Mike D'Antoni. Porter was an Assistant Coach of the Detroit Pistons when he was let go after the Pistons were eliminated by the Boston Celtics in the 2008 NBA Eastern Conference Finals, losing 4 games to 2 and Pistons Head Coach Flip Saunders was fired June 3rd, 2008