Gordon signed a four-year deal worth $72 million to remain with the Royals with a mutual option for the 2020 season on January 6, 2016, . On May 22, 2016, Gordon collided with Royals' third-baseman Mike Moustakas while chasing a Melky Cabrera pop-up into foul territory down the left field line against the Chicago White Sox. Gordon suffered a scaphoid fracture in his right wrist and was placed on the disabled-list where he missed 29 games. He finished 2016 hitting .220/.312/.380 with a career high 148 strikeouts in 445 at-bats.