Alliance with Hornswoggle (2007–2008)
Shortly after the Royal Rumble, Finlay began a feud with The Boogeyman. At No Way Out, he and Little Bastard defeated The Boogeyman and The Little Boogeyman.[29] Finlay earned a place in theMoney in the Bank ladder match at WrestleMania 23; however, Mr. Kennedy won the match.[30]Following this loss, he would feud with Kennedy, after an attack on Little Bastard (now known as Hornswoggle) during the Money in the Bank match, and Jamie Noble for assaulting Hornswoggle after he won the Cruiserweight Championship. Finlay's feud, however, would quickly redirect to Kane after Finlay spilled coffee on him. The two also became involved with Batista and The Great Khali. AtSaturday Night's Main Event, he and Khali lost to Batista and Kane. Kane beat him atSummerSlam.Finlay defeated Kane in a Belfast Brawl rematch a few weeks later.
Finlay and Hornswoggle briefly separated when Hornswoggle was stripped of the Cruiserweight Title, and briefly moving to Raw with his "illegitimate father". Finlay then feuded with Rey Mysterioby attacking him during a confrontational interview with John "Bradshaw" Layfield. At No Mercy, Finlay faked an injury after taking a bump to the outside. Once placed on a stretcher, Finlay suddenly rose and attacked Mysterio, forcing Rey to be carried out on a stretcher. The feud continued atCyber Sunday, where fans voted for the two to face-off in a Stretcher match. Mysterio came out on top, but Finlay retaliated with a victory on the November 9 edition of SmackDown! The feud intensified further when the two faced on opposite teams at Survivor Series.
Finlay reunited with Hornswoggle by coming to rescue him in a match against The Great Khali, effectively becoming a fan favorite. At Armageddon, Finlay was placed in a match with Khali. Finlay scored an upset win after Hornswoggle interfered by hitting Khali in the groin with a shillelagh Still battling Khali and his translator, Ranjin Singh, with Hornswoggle, he qualified for the Royal Rumble. He drew number 27, but was immediately disqualified when he entered before his time to save Hornswoggle. Hornswoggle, who was also a competitor in the Rumble, was disqualified as well. Finlay fought in theElimination Chamber match at No Way Out, ultimately being pinned after a chokeslam on the steel floor by The Undertaker.
Finlay then began making occasional appearances on Raw to protect Hornswoggle from Mr. McMahon, who had been showing him "tough love". After Hornswoggle was injured in a Steel Cage match by John "Bradshaw" Layfield, Layfield revealed that Finlay was Hornswoggle's father, and not McMahon. A week after, on March 3, Finlay admitted to this fact At WrestleMania XXIV he was defeated by Layfield in a Belfast Brawl, where Hornswoggle also reappeared.