In a sorry beginning, the Castleford club was saddened by the death of director Harry Ainsley. On field, as soon as the season started Tony Smith, just returned from touring with Great Britain, was transfer listed at his own request for £150,000, signing for Wigan shortly after.

The match results were abysmal leading to John Joyner losing his coaching job in April. By that time Castleford had not won a match, and in fact went on to lose the first 11 games of the season, not winning until 18 May 12–10 over Salford. Mick Morgan took over as caretaker coach assisted by Graham Steadman and immediately brought in Mike Ford from Wakefield for another stint at the club. Shortly after, Stuart Raper was brought in as coach from Cronulla in Australia, although his first game was lost. Afterwards though, prophetically he stated "I did not come all this way to fail and from what I have seen there is no reason to think I will". Some signings were made to change the team around, Jason Critchley coming from Keighley with Adrian Flynn going the other way. This proved effective with Critchley scoring 12 tries in his 16 games.

Relegation was a real possibility with the club stuck winless at the bottom of the league so the first win over Salford, in a terrible game, lifted the whole club. Castleford’s first win though might have come a month before if Leeds hadn't scored on the last tackle of the game to win 24–21. A couple of draws, with Leeds and at Oldham helped the league position and then the World Club Championship games came in to deflect the focus. Home defeats 16–24 to Perth Reds and 14–42 to Hunter Mariners were no worse than the other Super League British clubs, who were mainly taken to the cleaners by their Australian opponents.

By the time Super League resumed Castleford had another two players from Wakefield, Richard McKell and Brad Davis, paying about £100,000 for the pair despite Davies being on the transfer list himself for £200,000. Amongst speculation, Castleford tried unsuccessfully to sign prop Steve Molloy from Featherstone.

On the downside, Lee Crooks announced his retirement due to a persistent knee injury and was granted a testimonial for his 17 year career. He was followed into retirement at the season end by Graham Steadman.

Results were still poor onfield, but July brought wins over fellow strugglers Paris St Germain and Oldham, which if reversed could have sealed relegation. In fact the latter match was the season turning point as a half-time 2–18 deficit was turned into a 25–18 victory after an Adrian Vowles Winston Churchill type speech during the break galvanized the team and brought a victory. It left Oldham in more trouble than Castleford, with them eventually finishing bottom and going into liquidation.

Another short break for the away games in the World Club Championship saw 2 more expected defeats in Australia and Castleford returned home for the big end of season push. There had been signs of improvement, and the last 4 games of the season brought 2 wins as Castleford came home having fought off relegation. The last home game, against Sheffield, was played with the relegation spectre lifted as Paris had won at Oldham to send them down. There might have been a third win, over London, but with Castleford winning by a point, Graham Steadman was sin binned for a ball steal that the TV screen showed was one–on–one. The lead had turned into an 8 point deficit when he got back on and the game was lost, resulting in a fans’ demonstration outside the referee's dressing room.

The season seemed to have talking points in every game and the final league game against Sheffield above was partially played through a rainstorm as heavy as those present are ever likely to see again. The flooded player tunnel and inches of water running along Wheldon Road after the game were abiding memories.

With the club's Super League status saved everyone breathed a big sigh of relief but no one was under any illusions about the close shave which had been experienced.

After such a poor season the Premiership Play-Offs held no aspirations even though the club was quite buoyant, but remarkably Castleford got to the semi-finals after going to top club Bradford and winning 25-12. St Helens were too strong though, winning 32–18, although Castleford had led 18–2 at one stage.

Off field, the club was working on Framing the Future and in March announced they would be leaving Wheldon Road for Whitwood to build a stadium with indoor ski slope and hotel. There could be no standing still as the RFL were rumoured to be ready to introduce a franchising system.

The league record was P22 W5 D2 L15 to finish 10th from 12. A total of 30 games were played and 34 players used.

In a further sign of the times and the future, Castleford announced a player sharing agreement with York.

The Alliance side had a good season, challenging for the top spot in the league before fading towards the season end. Graham Steadman had taken over as coach on Stuart Raper's appointment. The Academy side had a disappointing time, with many younger players used as older ones were drafted into the Alliance side. In mid season Tony Marchant took over as coach, replacing Martyn Ward and helped keep them in the top division of the championship.

Representatives

Lee Bardauskas, Dave Hill and Paul Smith were picked for the Yorkshire Academy squad
Danny Orr captained the Great Britain Academy
Chris Smith was a playing member of GB World 9s Squad
Dean Sampson played for Great Britain

Debut this season after joining the club

Jason Roach wing Swinton
Sean McVean prop Balmain
Lee St Hilaire hooker Huddersfield in exchange for Jamie Coventry plus cash
Adrian Vowles stand-off North Queensland Cowboys
Jason Critchley centre Keighley in cash plus player deal involving Adrian Flynn
Brad Davis Australian halfback Wakefield
Jason Lidden second row Canterbury Bulldogs, Australia
Richard McKell Australian prop Wakefield

Other debuts

Paul Smith sub forward Castleford Academy
Danny Orr scrum half Castleford Academy

Last career game played this season and next move

Tony Smith stand-off Wigan £150,000
Adrian Flynn wing Keighley in deal involving Jason Critchley
Brendan Tuuta second row Warrington
Diccon Edwards wing Leeds RU
Chris Smith wing St Helens £60,000
Jason Roach wing Warrington
Grant Anderson centre moved to Halifax £85,000 1994/95 then rejoined 1996. In 1998 it was reported he would sign for Hunslet and then changed to Keighley
Ian Smales 2nd row Featherstone on loan, later joined Hunslet
Sean McVean prop released
Jason Lidden second row released
Sean Richardson 2nd row Widnes on loan later permanent
Lee Bardauskas second row Bradford on loan, also in 1998 then to Batley 1999
Lee St Hilaire hooker released 1998
Graham Steadman full-back retired to join coaching staff
Lee Crooks prop retired
Simon Middleton wing loan to Bramley and Featherstone. Later joined Leeds Rugby Union 1998
Richard Goddard centre Hunslet Hawks 1998