2005/06: After their strong finish there was an air of optimism for the Nuggets entering the season, as Coach George Karl entered his first full season. However, early in the Nuggets first game disaster struck as Nene the teams budding young star rebounder suffered a season ending knee injury playing just two minutes. Without Nene the Nuggets were vulnerable to bigger physical teams. However, against teams that like to run up and down the court with a small line up played right into the Nuggets hands. Playing in the Northwest Division was also helpful for the Nuggets as they were below .500 but in first place as the New Year began. Led by Carmelo Anthony who had a team high 26.5 ppg the Nuggets would eventual go over .500, as they captured their first division title in nearly two decades with a 44-38, as they were the only team in their division to make the playoffs. In the playoffs the Nuggets were a team that became targets of scorn as they had the 3rd seed despite having the same record as the 8th seeded Sacramento Kings, this would lead to changes in the playoff seeding as the division champs was no longer guaranteed the top three spots. Playing the Los Angeles Clippers and not having home court as home court was decided on team record and not playoff seeding the Nuggets were exposed as they were beaten convincingly in five games.

2006/07: The Nuggets looking to improve acquired J.R. Smith and Joe Smith in the off-season, as they continued to play decent but not dominating basketball. Meanwhile Carmelo Anthony continued to bud into a star as he led the NBA in scoring through 22 games, when he found himself in the middle of controversy as the Nuggets had an ugly brawl with the New York Knicks in the waning seconds of a blow out win on the road. The fight which started after the Knicks Mardy Collins committed a hard foul on J.R. Smith, evolved into the talk of the league when Melo landed a sucker punch on Collins and ran away, causing the brawl which was nearly extinguished to flare up again. The fight would lead to heavy criticism for Carmelo Anthony and a 15-game suspension. Just a few days after the fight fearing the loss of Anthony would hurt their playoff chances the Nuggets pulled the trigger on a blockbuster deal landing Allen Iverson from the Philadelphia 76ers for Joe Smith, Andre Miller, and two first-round draft picks.