In the 2007–08 season, on 23 August 2007, Daly says he's making his return within the next six weeks. Having appeared four times on the bench, Daly made his return, on 10 November 2007, in a 2–0 win over Kilmarnock. However, on his next appearance, Daly suffered another injury, in the 24th minutes, on his ankle, against Hibernian. He would be out for two months, expectations on making his return in New Year Though the two months is about come to the end, his injuries went even worse, that will keep him to recover for another month. On 12 March 2008, Daly made his recovery and played his first match, coming on as a substitute for Craig Conway, in a 0–0 draw against Celtic. Towards the end of the season, Daly has since come on as a substitute without scoring, often playing out of position. Upon his return injuries, Levein described fully fit Daly as a new signing, having made a return.