 Upon retiring from the bench, Arbour was named vice-president of player development for the Islanders.He returned to coach the Islanders in the 1988–89 season and remained there through 1993-94, notably upsetting the two-time defending champion Pittsburgh Penguins in the 1993 playoffs.He was awarded the Lester Patrick Trophy for his contributions to the sport and was elected to the Hockey Hall of Fame in 1996.