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The station championship years declined the Rockets team as Hakeem Olajuwon was aging. Some of the role players similar to Sam Cassell and Robert Horry were traded for Charles Barkley from the Phoenix Suns and Matt Maloney signed to the team in 1996. They were good, but the Utah Jazz eliminated them from the Western Conference Finals in 1997 and in the first round in 1998, dimished any chances of holding an NBA title again. Then in 1999 brought the fall of the winning team reputation they had, as Charles Barkley was injured and planned to retire after the injury, but the fall also brought some once thought new hope, Scottie Pippen was traded from the Bulls after Micheal Jordans 2nd retirement, and Steve Francis and Cuttino Mobley arrived into the team that year. They got into the playoffs in 1999 with a record of 31-19 on a 5th place seed, but lost to the Los Angeles Lakers in the first round with a series of 4-1, this ended the Rockets winning years as the years ahead would bring a series of losses and a bad reputation.

The Rockets during this era were a total blowout, and in return brought loss of national respect they once had, the Rockets however in the year 2000 brought a 45-37, but it still didn't cut them into the playoffs. Then the aged Hakeem Olajuwon was traded to the Toronto Raptors in 2001 which leaves only Steve Francis and Cuttino Mobley as successors in being the head stars in the team, but the following 2001-2002 season was of little success, as their team was moslty made up of young Rookies and bench players who barely receive playtime, which made Francis and Mobley's job of making the team a winning one more difficult. The first "Hakeem-less" season in almost 20 years was tied up at a disappointing record at 28-54.

The losing season of 2001-2002 brought dishonor and a total loss of faith of the Rockets nationally and locally in Houston . Then, Yao Ming a tall 7 foot and 6 inches Chinese center, playing for the Shanghai Sharks, decided to participate in the 2002 NBA draft and was selected by the Rockets. Some people drew comparisons between Yao and Rockets legend Hakeem Olajuwon. The 2002-2003 basketball season marked a return to winning for the Rockets, with the trio of (Yao Ming, Steve Francis , and Cuttino Mobley ), with the team finishing with a record of 43-39.

The 2003-2004 season witnessed a record of 45-37, similar to the last season, but this record earned their first playoff berth of the new millenium. However they were eliminated in a similar fate as their preceding teams, being knocked out with a 4-1 record in the first round of the playoffs against the Los Angeles Lakers.

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