The 2006-2007 season was another successful one for Bruce Pearl and the Tennessee Volunteers. Led by All-American guard Chris Lofton, the team finished the regular season with a 22-10 record and secured a no. 5 seed in the NCAA Tournament. The Volunteers continued to play their signature up-tempo style and aggressive defense, finishing the season ranked 2nd in the nation in steals per game.

In the NCAA Tournament, the Volunteers faced off against Long Beach State in the first round, winning by a score of 121-86 to set a new school record for most points in an NCAA Tournament game. Tennessee then faced off against Virginia in the second round, winning by a score of 77-74 to advance to the Sweet Sixteen for the second year in a row. In the Sweet Sixteen, the Volunteers faced Ohio State once again, hoping to avenge their loss from the previous season. Despite a valiant effort, Tennessee fell to the Buckeyes by a score of 85-84 in a tightly contested game that came down to the final seconds.

Despite the disappointing end to the season, the Volunteers had another successful campaign under Bruce Pearl, with Chris Lofton earning SEC Player of the Year honors for the second year in a row. The team's success also translated to the stands, as Thompson-Boling Arena continued to be one of the most raucous and intimidating home courts in college basketball, with an average attendance of 19,661 fans per game.