In 2007, Phillips returned to the Lakeside but lost again in the first round, this time to Scotland's Paul Hanvidge. His form began to improve during 2007 with a tournament win at the Turunç Open in Turkey, and semi-final appearances at the Welsh Classic and Northern Ireland Open. Towards the end of 2007 he was on the receiving end of a defeat and a nine-dart finish by John Walton in their last 16 match at the 2007 Winmau World Masters.