In the 2017–18 EuroLeague, Žalgiris was again projected to be one of the last teams. During October–December, Žalgiris struggled with a 5–5 record, before winning a five-game streak to finish the first round 10–5, tied for third place in the standings. In the second round, Dee Bost was replaced by Beno Udrih. Žalgiris struggled for the first few weeks of the second round, but fought its way to an 18–12 record (sixth place) and qualified to the EuroLeague playoffs for the first time since 2001. The team qualified for the 2018 EuroLeague Final Four after beating Olympiacos in game 4 to clinch a 3–1 series win. The team achieved this despite having the second-lowest budget in the league. Žalgiris lost to Fenerbahçe in the semifinals, 76–67. In the third-place game, Žalgiris faced longtime rivals CSKA Moscow; Žalgiris lead by as much as 24 points, but CSKA rallied and Žalgiris narrowly won 79–77, achieving third place in the Euroleague. In the LKL, Žalgiris won the regular season, and beat Lietuvos rytas in the finals with a 4–1 record, earning their eighth consecutive LKL championship. This was the club's best season since 1999.
