The 2007-2008 season saw the Spurs go 56-26 and finish 3rd in a volitale Western Conference where 7 games separated all 8 playoff teams. The season was also marked by major trades and aquisitions by many teams, most notably Kevin Garnett and Ray Allen being acquired by the Boston Celtics, Pau Gasol going to the Los Angeles Lakers, and Shaquille O'Neal going to the Phoenix Suns. Although the Spurs avoided any major deals, they still made a mid-season trade to acquire Kurt Thomas from Seattle. Despite a strong 17-3 start and an 11-game winning steak between February and March, the Spurs stayed relatively under the radar of the major trades and quickly rising Celtics. The Spurs faced Phoenix in the first round in a rematch of the previous year's controversial semifinal series. The Spurs rode the momentum of a thrilling Game 1 win (thanks in part to a rare clutch 3-pointer by Tim Duncan) to defeat the Suns in five games. The Spurs second round opponent would prove to be more than a handful as the veteran Spurs faced Chris Paul the up-and-coming New Orleans Hornets. The Spurs and the Hornets would battle for seven hard fought games (with New Orleans earning the upper hand throughout much of the series), but the Spurs scrapped together a game 7 win on the road (marking their first ever game 7 road win and series win after being down 0-2) to advance to the Western Conference Finals against Kobe Bryant and the Lakers, where their run would come to an end after five games.

Despite the setback in 2008, the Spurs appear poised to contend for NBA titles for the next few seasons. With Tim Duncan, Tony Parker, and Manu Ginobili all under contract until at least 2010, the Spurs have a solid foundation to build championship contending team around.