After defeat after a draw and a replay in the Munster final of 1996, Dunne lined out in a second consecutive provincial decider in 1997. Clare provided the opposition on that occasion, however, it was an occasion to forget for Dunne as Tipp lost a close and exciting game by 1–18 to 0–18. The introduction of the new 'back-door' system resulted in both Clare and Tipperary meeting for the second time in the first all-Munster All-Ireland final. The game itself was one of the best of the decade. Clare were well on top for much of the game, however, Liam Cahill and Eugene O'Neill scored twice for Tipp in the last ten minutes. John Leahy missed a goal chance in the last minute while another Tipp point was controversially ruled wide. At the full-time whistle Clare won by a single point – 0–20 to 2–13. In spite of this defeat Dunne was later presented with his first All-Star award.