The first signing of the season was made when Israeli international midfielder Eyal Berkovic was purchased for a fee of £1.75 million. The first two games were won as the Hammers beat Barnsley 2–1 away and old rivals Tottenham 1–0 at home. In September there were mixed results; Newcastle won 1–0 at Upton Park followed by a poor 4–0 reverse at Arsenal. Both Hartson and Berkovic were on target in the 2–1 home victory against Liverpool and in the League Cup a hat-trick from Hartson saw Huddersfield Town beaten 3–0.

There was a flurry of transfer activity as Danny Williams went to Everton in a swap for defender David Unsworth, Danish defender Marc Rieper went to Celtic, while midfielder Michael Hughes joined Wimbledon. In their place West Ham signed defender Ian Pearce and winger Andy Impey.

In top form was John Hartson as he scored twice in the 3–0 League Cup win against Aston Villa. The away form was causing concern, with defeats at Leicester City, Chelsea and Leeds United. Young Frank Lampard scored a hat-trick as Walsall were knocked out of the League Cup 4–1 at Upton Park.

Striker Kitson was missing with a groin injury, which prompted the purchase of French forward Samassi Abou. Kitson returned from injury in December and scored the winning goals in victories over Sheffield Wednesday, Coventry City and Wimbledon. The Yorkshire non-league side Emley were the visitors in the FA Cup and were narrowly beaten 2–1. Days later the Hammers went out of the League Cup after losing 2–1 at home to Arsenal. At home to Barnsley Abou scored twice as the Yorkshire side were crushed 6–0.

Then the Irish pair Rowland and Dowie joined Queens Park Rangers in a swap deal for winger Trevor Sinclair, who scored twice on his Hammers debut against Everton. An in-form West Ham side then won 2–1 at Manchester City in the FA Cup and in the next round Blackburn Rovers were knocked out following a tense penalty shoot-out at Ewood Park. In March there were fine home wins against Chelsea and Leeds but the FA Cup game at home to Arsenal saw the Hammers this time lose on penalties.

A UEFA Cup place was looking likely until a 4–2 home defeat by Southampton was followed by a 5–0 thrashing at Liverpool. The final home game saw an exciting clash with Leicester City, with the Hammers winning 4–3. Former Hammer Tony Cottee was given a rousing welcome and repaid the ovation by scoring twice. An eighth-place finish was the Hammers highest finish in the Premier League.