After leaving Chicago, he worked as Assistant Coach with the Pittsburgh Penguins from 1988 through 1993, winning the Stanley Cup in 1991 and 1992. He was named interim coach for the Tampa Bay Lightning in 1997. The team went 0–8–0 under Paterson.
Following his departure from Chicago, he served as an assistant coach with the Pittsburgh Penguins from 1988 to 1993, capturing the Stanley Cup in both 1991 and 1992. He was appointed interim head coach of the Tampa Bay Lightning in 1997, but the team struggled under Paterson's leadership.