Lue opted for early entry into the 1998 NBA draft. He was selected 23rd overall by the Denver Nuggets but was traded on draft night to the Los Angeles Lakers with Tony Battie in exchange for Nick Van Exel. His first three years with the Lakers were disappointing. His playing time was limited and he suffered from injuries in 2000. But Lue excelled in the 2001 playoffs. Due to his quickness, he was specifically used to guard Allen Iverson during Game 1 of the Finals.