On 10 July 2007 he was sent back on loan to Queens for the new season, making his debut for the second time on 4 August 2007 against St Johnstone. MacDonald established himself as Queens first choice keeper and was an integral part of the team on their run to their first ever Scottish Cup Final. With MacDonald in goal, Queens triumphed in the quarter finals for only the second time in their history despite their previous Scottish Cup quarter final appearances running into double figures. The 2–0 victory against Dundee produced a record breaking 84-yard winner from Ryan McCann. The semi final 4–3 victory against Aberdeen produced another record; the highest scoring Scottish Cup semi final in history.