Kelly played his junior hockey with the Prince Albert Raiders of the Western Hockey League (WHL), where he compiled 254 points in 268 games. In 1995–96, Kelly tallied 101 points and 203 penalty minutes to lead the Raiders to a 47-win season and second place in the WHL Eastern Division. Kelly was then drafted in the first round, sixth overall, of the 1995 NHL Entry Draft by the Edmonton Oilers.