After the Timberwolves' success in the 2003–04 NBA season, in which they won their first (and to date, only) division title and advanced to the Western Conference Finals, they struggled in the 2004–05 season. On February 12, 2005, McHale fired Saunders and named himself head coach for the rest of the season. McHale was unable to right the ship, and the Wolves missed the playoffs for the first time in nine years. Many fans believed that Saunders' firing was unwarranted, citing instead the contract troubles of Sam Cassell and Latrell Sprewell as the reasons for the team's failure. However, many also acknowledged that Saunders had coached ten years in Minnesota, and perhaps a new voice was needed.
Saunders replaced Larry Brown as coach of the Detroit Pistons on July 21, 2005. Under Saunders, the team set a new franchise record for wins during the regular season, finishing with a 64–18 record. Saunders coached the Eastern Conference All-Stars in the 2006 NBA All-Star Game in Houston, Texas.