Duggan eventually returned to television and started a feud with then-Intercontinental Champion Shawn Michaels, challenging him for the title on the edition of May 3 of "Monday Night Raw". Michaels ran through the crowd, and retained the championship by countout. On the next show, to prevent Michaels from pulling the stunt again, Duggan received a return bout in a lumberjack match. However, Michaels’ dirty tricks cost him again as the champion tossed Duggan out of the ring where his former rival Yokozuna laid him out with a leg drop behind the official's back. Duggan would lose the match by disqualification, as Mr. Perfect climbed into the ring and assaulted Michaels; this set off a brawl between the lumberjacks that ended when Duggan came to and cleared the ring with his 2-by-4. Duggan then competed in the King of the Ring tournament, defeating Papa Shango to qualify before losing to Bam Bam Bigelow in the quarterfinals. He continued to appear on WWE programming until the summer, when he left the company after losing several pre-Summerslam matches to Yokozuna.