Mike Milbury trades
| Pittsburgh Penguins acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
 | Andreas Johansson | November 17, 1996 | Bryan Smolinski |  |
| Darius Kasparaitis | ||||
| Toronto Maple Leafs acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
 | Darby Hendrickson | October 10, 1996 | 1998 conditional 5th or 6th round pick (#123-Jiri Dopita) | |
| Colorado Avalanche acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
 | Brent Severyn | September 4, 1996 | 1997 3rd round pick (#80-Francis Lessard) | |
| Dallas Stars acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
 | Brad Lukowich | June 1, 1996 | 1997 3rd round pick (#79-Robert Schnabel) | |
| Calgary Flames acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
 | Bob Sweeney | March 20, 1996 | Pat Conacher | |
| 1997 6th round pick (#140-Ilja Demidov) | ||||
| Toronto Maple Leafs acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
| Wendel Clark | March 13, 1996 | Sean Haggerty | |
| Mathieu Schneider | Darby Hendrickson | |||
| D.J. Smith | Kenny Jonsson | |||
| 1997 1st round pick (#4-Roberto Luongo) | ||||
| Chicago Blackhawks acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
 | Danton Cole | February 2, 1996 | Bob Halkidis | |
| Toronto Maple Leafs acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
| Don Beaupre | January 23, 1996 | Ken Belanger | |
| Kirk Muller | Damian Rhodes | |||
| New York Islanders acquire | Date | Ottawa Senators acquire | ||
|---|---|---|---|---|
| Don Beaupre | January 23, 1996 | Wade Redden |  |
| Bryan Berard | Damian Rhodes | |||
| Martin Straka | ||||
| Boston Bruins acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
 | Dean Chynoweth | December 9, 1995 | 1996 5th round pick (#128-Petr Sachl) | |
| Colorado Avalanche acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
| Claude Lemieux | October 3, 1995 | Wendel Clark | |
| New Jersey Devils acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
 | Steve Thomas | October 3, 1995 | Claude Lemieux | |
| Dallas Stars acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
| cash | September 21, 1995 | Jason Herter | |
| Tampa Bay Lightning acquire | Date | New York Islanders acquire | ||
|---|---|---|---|---|
 | 1997 5th round pick (#112-Karel Betik) | September 14, 1995 | Alexander Semak | |