Hamilton was manager Kenny Dalglish's first major signing at Newcastle, having fought off competition from Middlesbrough. Hamilton was injured at the time of his arrival and his full debut was further delayed after he damaged ankle ligaments in a pre-season friendly with Italian-side Juventus. Hamilton eventually made his debut in a League Cup 2–0 victory over Hull City when he scored the opening goal and received a call-up for the England under 21 side against Portugal in May 1997. In November 1997, he made his European debut, against Spanish side FC Barcelona, which finished in a 1–0 defeat. However, Hamilton struggled to break into the first team at Newcastle United and, along with Rob Lee and Alessandro Pistone, was not even given a squad number for the 1999–2000 season.