The franchise played its first game as the Charlotte Hornets in October 1988. The name "Hornets" was chosen because of its traditional use by Charlotte 's professional sports teams. (Charlotte Hornets was used by the city's minor league baseball franchises from 1901 to 1972, and by its entry in the short-lived World Football League in 1974 and 1975.) The name derived from the nickname "Hornets' Nest" that was bestowed upon the city by Lord General Cornwallis during the Revolutionary War. The team was led by guard Kelly Tripucka , who provided instant points. Tripucka was Charlotte 's top scorer for the franchise's first two seasons. The team also had sharpshooting rookie Rex Chapman , who was also an instant scoring threat.

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For the 1990-91 season, the team picked up guard Kendall Gill in the NBA Draft, and got slightly better, but still managed to win the draft lottery and the rights to the number one overall pick. For the 1991-92 season, the Hornets drafted power forward Larry Johnson from UNLV with the number one overall pick. Johnson had an impact season, finishing among league leaders in points and rebounds, and winning the 1992 NBA Rookie of the Year Award. Kendall Gill led the club in scoring, with over 20 points per game.

In 1992-93, the team won the second pick in the draft, using it to select Georgetown center Alonzo Mourning. The Hornets now had two 20-10 threats in Johnson and Mourning, who with Gill formed perhaps the league's top young trio. It was good enough for fifth in the Eastern Conference and a playoff spot, where they upset the Boston Celtics with Mourning's famous series-winning shot. However, they lacked the experience and depth to defeat the New York Knicks.

The next few years were marked by injuries to Johnson and Mourning, though they did get back to the playoffs in 1994-95, only to be beaten by the Chicago Bulls. In the offseason the team dealt Mourning to the Miami Heat for guard Glen Rice and center Matt Geiger . Geiger and Johnson tied for the team lead in rebounds, while Johnson and Rice provided balanced but high-powered scoring, with all-star guard Kenny Anderson running the point for the injured Muggsy Bogues .