The 1988–89 NBA season was the Rockets' 22nd season in the NBA and 18th season in the city of Houston. Houston hosted the All-Star Game this season. During the off-season, the Rockets acquired Otis Thorpe from the Sacramento Kings, signed free agent Mike Woodson, and hired Don Chaney as their new head coach. The Rockets posted a six-game winning streak in December, and held a 28–18 record at the All-Star break. Despite a 7-game losing streak between February and March, the team finished second in the Midwest Division with a 45–37 record.