For the 1998–99 season Davis' best result was reaching the quarter-finals at the 1998 UK Championship, the first time he had progressed past the third round in five years, but lost to Paul Hunter. He also reached the same stage at the 1999 Welsh Open, but lost to Williams. However, at the 1999 World Snooker Championship, he was unable to win a match, losing in the first round on a deciding frame to Joe Perry. He did reach the quarter-finals of the 1999 British Open in 1999–2000, but only won one match at the 2000 World Snooker Championship, defeating Graeme Dott, but losing to Higgins 11–13. After this loss, Davis fell out of the top 16 in the world rankings for the 2000–01 season for the first time since 1980 and would not play in the Masters for the first time since he first qualified.