In 2005, McGrath came out of retirement to race a limited schedule on the Supercross circuit. He rejoined forces with his former Team Honda squad and has recently proven to be at a competitive level and speed that has not been seen from McGrath since the 2001 season. At the age of 34, he placed regularly in the top 5 positions. In the same year, Jeremy also raced Supermoto in the X-Games and placed 2nd to take home the silver medal. McGrath switched motorcycles from his trademark Honda CR250R 2-stroke to a Honda CRF450R 4-stroke at Round 3 of the 2006 Supercross season. In keeping with his partial schedule, McGrath withdrew from the series after Round Six, after earning multiple top 5 finishes, and running as high as fourth in the point standings. Jeremy competed in the 2006 Summer X Games; earning a 2nd in Step-Up and 7th in Supermoto. He announced plans for the McGrath Invitational; an off-season supercross race with an innovative track and huge purse. McGrath announced that the 2006 Invitational would be the final professional Supercross race of his career. McGrath was inducted into the AMA Motorcycle Hall of Fame in 2003.