For the 2000–01 season, Peca and the Buffalo Sabres could not agree on a contract. Peca went without a contract the entire season. Peca was later traded to the New York Islanders in exchange for Tim Connolly and Taylor Pyatt, where he led the Islanders to their first playoff berth in seven years. Peca was hip-checked by Toronto Maple Leafs' Darcy Tucker during the 2002 Stanley Cup playoffs in game five of the first round. The check blew out Peca's MCL and ACL on his left knee, ending his season and delaying his entry into the 2002–03 season. No penalty was assessed, but the NHL made clipping illegal as a result of the incident.