Coming off their NBA Championship, the Bullets were transferred to the Atlantic Division. The Bullets would continue to remain one of the top teams in the league as they captured the Atlantic Division championship with a league best record of 54-28. Despite their league best record, the Bullets would end the season on a sour note losing 8 of their last 11.
In the Eastern Finals, the Bullets would find themselves down 3 games to 1 facing the San Antonio Spurs. The Bullets would rally to win the next 2 games and force a 7th game at home. In Game 7 the Bullets would rally again. They overcame a 4th Quarter deficit to beat the Spurs 107-105.
The triumph would set up a rematch with the Seattle SuperSonics in the NBA Finals. In the Finals, the Bullets would squeak out a close victory in Game 1 by a score of 99-97. However, the Sonics would rally to win the next 4 and take the series in 5 games.