The 1988–89 NBA season was the 76ers 40th season in the NBA and 26th season in Philadelphia. In the 1988 NBA draft, the 76ers selected power forward Charles D. Smith from the University of Pittsburgh with the third overall pick, but then traded him to the Los Angeles Clippers in exchange for shooting guard Hersey Hawkins out of Bradley University, as the team needed more backcourt scoring to complement the inside play of All-Star forward Charles Barkley. The team also acquired Ron Anderson from the Indiana Pacers during the off-season. The Sixers would return to the NBA Playoffs after a one-year absence, holding a 26–20 record at the All-Star break, and finishing second in the Atlantic Division with a 46–36 record.

The 1988–89 NBA season was the Bullets' 28th season in the NBA. In the 1988 NBA draft, the Bullets selected Harvey Grant from the University of Oklahoma with the twelfth overall pick, and Ledell Eackles from the University of New Orleans with the 36th overall pick. During the off-season, the team acquired Dave Feitl from the Golden State Warriors. Under Wes Unseld's first full season as head coach, and with the addition of Grant and Eackles, the Bullets struggled losing seven straight games in December, which led to a 4–14 start, and held a 17–28 record at the All-Star break. However, the team played above .500 for the remainder of the season, and finished fourth in the Atlantic Division with a 40–42 record, which was two more wins then the previous season, but the team failed to qualify for the playoffs, finishing just two games behind the 8th-seeded Boston Celtics.