Michaels returned in January 2005 as the special guest referee in the
Elimination Chamber Match (which featured Chris Benoit, Chris Jericho, Edge, Randy Orton, Batista, and eventual winner Triple H) at
New Year's Revolution 2005. During the match, Michaels superkicked Edge, starting a feud between the two.
At the
2005 Royal Rumble, Edge defeated Michaels, who pinned him using the ropes for leverage. Michaels went on to compete in the Rumble match later that night and eliminated
Kurt Angle. An angry Angle returned to the ring and eliminated Michaels and then put Michaels in the
Ankle Lock. Michaels issued a challenge to Angle for a match at WrestleMania 21, which Angle accepted when he appeared on
RAW to attack Michaels. The following week on
RAW, Marty Jannetty and Michaels had a one time reunion as
The Rockers and defeated
La Résistance. Three days later on
SmackDown!, Angle defeated Jannetty with the Ankle Lock.
To send a "message" to Michaels; Angle also humiliated HBK's former manager Sensational Sherri, when he applied the Ankle Lock on her.
At
WrestleMania 21 on
April 3 2005, Angle defeated Michaels by submission, again with the Ankle Lock.
The next night on
RAW,
Muhammad Hassan and
Daivari came out to confront and assault Michaels.
The following week, Michaels approached
RAW General Manager
Eric Bischoff demanding a handicap match with Hassan and Daivari. Bischoff refused but informed Michaels to find a partner and he would grant a match. Michaels then made a plea for
Hulk Hogan to come back and team with him.
On the
April 18 2005 episode of
RAW, Hassan again led an attack on Michaels until Hogan appeared to save Michaels and accept his offer.
At
Backlash 2005, Hassan and Daivari lost to Hogan and Michaels when Daivari was pinned.
On the
July 4 2005 edition of
RAW, Michaels and Hulk Hogan had a tag team match, in which they ended up winning. During the post-match pose, Michaels hit Hogan with his Superkick, knocking Hogan to the ground and turning Michaels
heel for the first time since returning in 2002. The following week on
RAW, HBK appeared on
Piper's Pit where he superkicked
Roddy Piper and then challenged Hulk Hogan to a match at
SummerSlam. Prior to SummerSlam 2005, neither Hogan nor Michaels had lost in a one-on-one match at SummerSlam. Hogan defeated Michaels at SummerSlam. After the match Michaels extended his hand to him, saying "
I needed to know, and I found out" and he and Hogan shook hands. Michaels left the ring to allow Hogan to celebrate with the crowd and Michaels turned face once more.
Michaels began a feud with
Chris Masters. The pair faced each other in a match at
Unforgiven 2005 where Michaels won via pinfall. At
Taboo Tuesday 2005, Michaels won the fans choice for the second year running and became a part of the
Triple Threat match with
John Cena and Kurt Angle. Cena would retain the
WWE Championship.
On the
December 26 2005 edition of
RAW,
Vince McMahon lauded Michaels for his part in the
Montreal Screwjob. Michaels said he was only being loyal to his company, but said he had moved on and McMahon should move on as well. McMahon told Michaels he can "screw" him like he screwed
Bret Hart, and he began setting unusual stipulations for Michaels' matches and interfering on behalf of Michaels' opponents.
During the
2006 Royal Rumble, to which Michaels entered twenty fifth, he eliminated
MNM and
Shelton Benjamin in succession to make it into the final six. At that point, Mr. McMahon’s music hit, and the Chairman made his entrance. As HBK stared down McMahon,
Shane McMahon made a surprising appearance, attacking Michaels from behind and eliminating him from the match. An irate HBK ran back into the ring and nailed
Triple H with Sweet Chin Music before chasing the McMahons to the locker room.
After several weeks of attacks and stipulations, Michaels confronted McMahon in the ring and challenged him to a match. McMahon refused and attempted (unsuccessfully) to force Michaels to sign retirement papers. After Vince and Shane knocked HBK out with a steel chair, Mr. McMahon booked a match between himself and HBK at WrestleMania 22.
During a handicap match against the
Spirit Squad Michaels former partner
Marty Jannetty came down to help Michaels. Mr. McMahon offered Jannetty a contract if he "kissed his ass." The next week on
RAW Jannetty refused and took Chris Masters' "Masterlock challenge" instead. Michaels tried to help Jannetty, which ultimately ended in Shane forcing a groggy Michaels to kiss Vince's ass.
Michaels and Shane McMahon then met in a
Street Fight at
WWE Saturday Night's Main Event. Throughout the match, Vince interfered, allowing Shane to get the upper hand. However, Michaels kept kicking out and refused to submit. When he got the upper hand again by superkicking Shane, Vince knocked the ref down before the three count. Michaels went after Vince, which gave Shane enough time to hit Michaels with a low blow from behind. Shane applied the Sharpshooter, and Vince McMahon immediately ordered for the bell to be rung, even though Michaels did not tap out; an allusion to the
Montreal Screwjob.
Despite interference from the Spirit Squad and Shane McMahon, Michaels defeated Mr. McMahon at
WrestleMania 22 in a bloody
No Holds Barred match. The match is noted for being the start of the DX reunion that was soon to come. At
Backlash 2006, Vince and Shane McMahon beat Michaels (with "
God" as his tag team partner) with help from the Spirit Squad in a no DQ match; Michaels suffered a partially broken nose. Michaels got revenge on the Spirit Squad in various ways, but by
May 22, the Squad
injured Michaels' knee; this angle was written so that Michaels could have surgery on his knee, which had been legitimately injured for some time.