The Lobos lost Daniels and Monroe to graduation and were picked in the 1967–68 preseason to finish last in the WAC. Instead, they started the season 17–0, rising to #6 before beating #5 Utah in the Pit, propelling the Lobos to #4. Four starters averaged in double-figures in scoring, led by senior guard Ron Nelson at 19.5 points a game. They swept their regular season match-ups against New Mexico State, with both teams ranked in the top ten at the time of their second game. The Lobos won the WAC championship, Nelson was named a Helms All-American, and the Lobos earned their first NCAA tournament appearance. They entered the tournament 23–3 and ranked #6. They hosted their first-round game in The Pit but lost to unranked Santa Clara. Starting center Greg "Stretch" Howard was ineligible due to an NCAA rule disallowing transfers to play in postseason games; without his 14 points and 10 rebounds a game, the Lobos' balanced attack withered, and Nelson was their only consistent offense. Also playing in the first round at The Pit, New Mexico State lost to eventual champion UCLA, then won the consolation game over the Lobos, who finished the season 23–5.