On December 15, 2016, Chapman signed a five-year, $86 million contract to return to the Yankees. This was the largest contract given to a relief pitcher as of 2017.
On May 14, 2017, Chapman was placed on the 10-day disabled list due to rotator cuff inflammation in his left shoulder. Although MRIs revealed no structure damage, Chapman was ruled out for at least two weeks. On June 18, the Yankees activated Chapman from the DL and he pitched that afternoon against the Oakland A's.
On August 13, Chapman gave up a home run to Rafael Devers of the Boston Red Sox. The pitch was clocked at 103 mph, making it the fastest pitch hit for a home run in the Statcast era (breaking Kurt Suzuki's home run off of a Chapman 102 mph pitch the previous year). It was also Chapman's first home run given up to a left-handed batter since Luke Scott of the Baltimore Orioles did so in 2011. Later that month, Chapman gave up only his third home run off a left-hander when Yonder Alonso of the Seattle Mariners hit one of his 101 mph fastballs out. His fastest pitch of 2017 was 104.3 miles an hour, best in MLB. His four-seam fastball had the highest average speed of any MLB pitcher's pitches in 2017, at 99.7 mph.
In 2018 Chapman was elected as an MLB All-Star, representing the American League. On July 13, 2018, he announced that he would skip the All Star Game to rest his knee due to tendinitis. On August 22, Chapman was placed on the 10-day disabled list due to left knee tendinitis. His fastest pitch of 2018 was 104.4 miles an hour, second-best in MLB only to pitches by Jordan Hicks. His sinker had the highest average speed of any MLB pitcher's pitches in 2018, at 100.9 mph. In 2018, he had the lowest swing rate for his in-strike-zone sliders of any pitcher in baseball (42.5%).
In 2019, he was 3-2 with 37 saves and a 2.21 ERA, as in 60 relief appearances he struck out 85 batters in 57.0 innings (13.4 per 9 innings).[60] Chapman logged one save in the American League Division Series and one in the American League Championship Series but gave up a walk-off home run to José Altuve with two outs in the ninth inning of Game 6 of the ALCS, eliminating the Yankees from the playoffs.
