On 12 July 2016, Powell returned to Wigan Athletic on a free transfer, signing a three-year contract. On 13 August 2016, Powell scored in his first appearance of the season, in a 3–0 home win against Blackburn Rovers. His first season was seemingly ended prematurely by injury during a January 2017 FA Cup game against Nottingham Forest, but Powell returned to first-team action three months later, coming on as a substitute and scoring an injury-time winner against Rotherham. On 13 April 2017, Powell scored an 11-minute hat-trick for Wigan, who were 2–0 down in the second half against Barnsley, earning his side a 3–2 home win. Powell continued his scoring momentum four days later, netting from the bench in Wigan's 2–1 away defeat to Brighton & Hove Albion on 17 April 2017. Despite scoring five goals in three consecutive substitute appearances, Powell's exploits weren't enough to help Wigan avoid relegation to EFL League One.