On August 11, 1997, Rude returned to the WWF as the "insurance policy" of the group that would become known as D-Generation X (DX) (Shawn Michaels, Triple H, and Chyna). The D-Generation X name was first used on October 13, 1997. As a member of DX, Rude never wrestled, but stayed ringside during the group's matches. A few days after the Montreal Screwjob at Survivor Series, Rude once again left the WWF. According to Bret Hart, Rude stayed in the locker room during Bret's confrontation with Vince McMahon after the match in Montreal, and later called Eric Bischoff, informing Bischoff that what had happened was in fact real. Rude was not signed to a full-time contract with the WWF, and was instead performing on a "pay-per-appearance" basis, Rude was able to negotiate a deal with Bischoff and WCW, in large part due to his anger over the Montreal Screwjob.