In 2007, the Cavs continued their success, officially clinching a playoff spot March 27th of the season. The team earned the second seed with a 50–32 record, generating a series of favorable matchups which included home court advantage until the conference finals. The Cavaliers' first-round was a rematch with the 7th-seeded Wizards, who finished 41–41 and struggled with injuries down the stretch to finish 2–8 in their last 10 games. The Cavaliers swept this series 4–0 (the first sweep in playoff history for the franchise) and faced the New Jersey Nets in the second round. They won the series 4–2 with James scoring 23 points and adding 8 rebounds and 8 assists in Game 6 as the Cavs beat the Nets 88–72.

The Cavaliers faced the Pistons for the second straight playoff year, this time in the Eastern Conference Finals. After again losing the first two games at Detroit, the Cavaliers won the next three to take a 3–2 series lead. This year the Cavaliers eliminated Detroit in Game 6, becoming only the third team in Conference Finals history to come back from a 0–2 deficit and win. The wins included a 109–107 double-overtime thriller at the Palace of Auburn Hills in Game 5, in which LeBron James scored the last 25 points for the Cavs, and his performance in this game is recognized as one of the best in NBA history. They continued to a dominant 98–82 win at home in Game 6. Rookie Daniel "Boobie" Gibson scored a career-high 31 points in the series clincher, and franchise won its first ever Eastern Conference championship. The team's first trip to the NBA finals was a short one, as they were outmatched and outplayed by the very strong San Antonio Spurs, who won the series in four games.