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.

The 1988–89 NBA season was the Hawks' 40th season in the NBA and 21st season in Atlanta. After falling into the second round of the playoffs for three straight seasons, the Hawks signed free agent and All-Star forward Moses Malone, who won a championship with the Philadelphia 76ers in the 1983 NBA Finals, acquired All-Star guard Reggie Theus from the Sacramento Kings, and signed undrafted rookie forward Duane Ferrell during the off-season. However, Kevin Willis was out with a broken foot suffered during the preseason, and was later on suspended indefinitely for missing functions and rehabilitation therapy.