In the summer of 1978, Nilsson and Hedberg signed with the NHL's New York Rangers for $2.4 million, further weakening the struggling WHA which would cease operations after just one more season. Nilsson's NHL career was marred by injuries due to a hit by Dennis Potvin of the New York Islanders. He was limited to 160 games in his three full seasons with the Rangers, though he scored an impressive 163 points in that time. He scored 8 goals and 16 points in the 1980–81 playoffs as the Rangers advanced to the semi-finals before being eliminated by their cross-town rivals, the defending champion New York Islanders. He didn't play in the NHL during the 1981–82 season, but returned to the Rangers lineup for the final ten games the following year.