In the 2006–07 season he did not play in the 2006 UK Championship so he could play in the 2006 Asian Games, where he won two medals. At the 2007 World Snooker Championship, Fu lost 3–10 to Anthony Hamilton in the first round. His best result during the season was a quarter-final run in the China Open, where he lost to Ronnie O'Sullivan. Following a first round loss at the Shanghai Masters, and nine years after his first appearance in a ranking final at the 1998 Grand Prix, Fu won the 2007 Grand Prix—his first victory in a ranking event. After defeating the reigning world champion John Higgins in the first knock-out round 5–4, Liu Song 5–0 in the quarter-finals. and Gerard Greene 6–5 in the semi-finals, he faced Ronnie O'Sullivan in the final. After falling 3–4 behind after the first session, he won 9–6, with a break of 76 in the final frame. He later reached the quarter-finals of the 2007 UK Championship, losing to Mark Selby and the semi-finals of the 2008 Masters, losing to Stephen Lee.