On the January 17, 2017 episode of "SmackDown Live", James made her return by helping Alexa Bliss retain her SmackDown Women's Championship against Becky Lynch in a Steel Cage match, revealing herself as the woman under the "La Luchadora" gimmick and establishing herself as a heel character, while also allying with Bliss in the process. She competed in her first match in nearly seven years in a WWE ring on January 29, 2017, at the Royal Rumble pay–per–view, teaming with Bliss and Natalya against Lynch, Naomi, and Nikki Bella in a losing effort. James went on to face Lynch at the Elimination Chamber pay–per–view in another losing effort. She would defeat Lynch in a rematch on the edition of February 14 of "SmackDown", but would lose a Two-Out-of-Three Falls match two weeks later to end the storyline. In March, James turned face after hitting Bliss with a Mick Kick, ending their brief alliance and leading to a non-title match between the two on the edition of March 14 of "SmackDown", in which James was victorious. At WrestleMania 33, James took part in a six–pack challenge for Bliss’ SmackDown Women's Championship, which saw Naomi winning the title.