On October 13, 2007, Baker was hired as manager of the Cincinnati Reds, replacing interim manager Pete Mackanin. Baker and the Reds finished 74-88 and 78-84 in 2008 and 2009, finishing 5th and 4th in the NL Central. In 2010, the Reds enjoyed success as one of baseball's breakout teams (which included first baseman Joey Votto being named Most Valuable Player of the National League), and on September 28, 2010, the Reds won the Central title. This championship led to their first playoff appearance in 15 years. However, the appearance was short-lived as the Reds were swept by the Philadelphia Phillies in the NLDS. Baker signed a two-year contract extension with the Reds on October 4, 2010.