For 2007, Sharp joined Rahal Letterman Racing, teaming with sophomore driver Jeff Simmons, though mid-season Simmons was replaced with Ryan Hunter-Reay. Sharp brought with him a new primary sponsor, the Patrón Spirits Company, who began as an associate sponsor in 2006. His new association with Patrón ended nine seasons of Delphi backing. His best finish of the season was 3rd, which he earned at the inaugural race at Iowa Speedway and also at Michigan International Speedway. A highlight of the season was his surprise pole position Texas Motor Speedway in June, his first since 2001. He was also able to capture his career-best finish in the Indianapolis 500, a 6th place. Sharp ended the season 8th in the championship standings.