Three weeks later, he began a feud with Hardcore Holly and lost three consecutive matches to him. Rhodes eventually earned Holly's respect, impressing Holly during their matches with his persistence and several near-falls, and the two formed a tag team. They earned a shot at the World Tag Team titles by defeating Paul London and Brian Kendrick and The Highlanders in a WWE.com exclusive match after an Alabama Slam. They fought against the Tag Team Champions Lance Cade and Trevor Murdoch at Survivor Series, in what was Rhodes' first on-screen title shot and pay-per-view match, but were unsuccessful. On the November 19, 2007 episode of Raw, Rhodes faced Holly for a fourth time, and beat him for the first time, although they were both attacked by Randy Orton afterwards.

On December 10, 2007, on the Raw 15th Anniversary special episode, Rhodes along with Hardcore Holly defeated Lance Cade and Trevor Murdoch for the World Tag Team Championship, marking Rhodes' first championship in WWE. The following week, Rhodes and Holly retained their title, in their first title defense, against Cade and Murdoch. They also successfully defended the championships against the teams of Santino Marella and Carlito and Paul London and Brian Kendrick. In May 2008, Ted DiBiase began feuding with the duo, threatening to take their titles in his first match as part of the Raw brand.

The Legacy (2008–2010)
At the pay-per-view event, Night of Champions on June 29, Rhodes turned on Holly by revealing himself as Ted DiBiase's partner to help DiBiase win the match, becoming a villain. After holding the championship for just over a month, they dropped it to John Cena and Batista on the August 4 episode of Raw. The following week, DiBiase and Rhodes used their rematch clause to regain the championship. Rhodes and DiBiase were joined by Manu, the son of Afa Anoa'i, in September, forming a stable of multi-generational superstars. On the October 27, 2008 episode of Raw, Rhodes and DiBiase lost the World Tag Team Championship to Kofi Kingston and CM Punk.

During this time, Rhodes, DiBiase and Manu entered a storyline with Randy Orton where Orton constantly criticized and insulted them, and attacked DiBiase on the November 3 episode of Raw. At Survivor Series, Rhodes, along with Orton, was a sole survivor, for Orton's team, in the annual Elimination match. Rhodes and Manu accepted Orton's offer for an alliance in the following weeks, and the trio dubbed themselves "The Legacy"; debuting in a two-on-three handicap match against Batista and Triple H. Orton began scheduling tests for The Legacy members, so they could prove themselves, and over two weeks, both Manu and Sim Snuka were kicked out.

On January 12, Snuka and Manu gave Rhodes the chance to align with them to attack Orton, along with the returning Ted DiBiase, but Rhodes refused. As they ambushed Orton, DiBiase instead joined with Orton and Rhodes to attack Snuka and Manu, and became a member of The Legacy. As part of The Legacy, Rhodes entered the Royal Rumble match in order to help Orton win, and lasted until the final three, before being eliminated by Triple H. Rhodes and DiBiase became involved in Orton's scripted rivalry with the McMahon family, helping him to attack Shane and Stephanie McMahon, and Stephanie's real-life husband, Triple H. Rhodes was also elevated to main event status as a result of joining The Legacy, competing in handicap and six-man tag team matches against Orton's opponents and rivals.On April 26, at Backlash, Rhodes, DiBiase, and Orton defeated Triple H, Batista, and Shane McMahon in a six-man tag team match, which, per the pre-match stipulation, resulted in Orton winning the WWE Championship. Rhodes suffered a minor neck injury in June, but did not need any time off to recover. Throughout mid-2009, Rhodes and DiBiase continued to compete against and attack Orton's rivals, especially Triple H. This led to Triple H reforming D-Generation X (DX) with Shawn Michaels, and DX defeated Rhodes and DiBiase at SummerSlam. Rhodes and DiBiase defeated DX at the following pay-per-view, Breaking Point in a submissions count anywhere match, but were defeated in a Hell in a Cell match at the Hell in a Cell pay-per-view in October, when Rhodes was pinned following a sledgehammer shot to the head. To sell the injury, Rhodes was taken out of the arena on a stretcher following the match.

Tension within The Legacy became apparent at the 2010 Royal Rumble, when Rhodes attempted to interfere in Orton's match for the WWE Championship. Rhodes was caught by the referee, resulting in a disqualification for Orton, who attacked Rhodes and DiBiase, who had tried to help Rhodes, after the match. On the February 15 episode of Raw, Orton took on Sheamus in a non-title rematch, but was again disqualified after Rhodes and DiBiase interfered. During the WWE Championship Elimination Chamber match at the Elimination Chamber pay-per-view, Rhodes interfered, passing a lead pipe through the cage to DiBiase. DiBiase hit Orton with the pipe and eliminated him from the match. The next night on Raw, Orton attacked Rhodes and DiBiase during a six-man tag team match, and they attacked Orton the following week in retaliation. This led to a triple threat match at WrestleMania XXVI, in which Orton defeated Rhodes and DiBiase.

SmackDown (2010)
As part of the 2010 WWE Supplemental Draft, Rhodes was drafted to the SmackDown brand. He made his debut for the brand on the April 30 episode of SmackDown, by defeating John Morrison. The following week on SmackDown, Rhodes participated in a tournament for the vacant WWE Intercontinental Championship, but lost to Christian in the semi-finals.

Other media
In July 2009, Rhodes became one of the faces of the Gillette "Be a Superstar" advertising campaign, along with Chris Jericho and John Cena. "Be a Superstar" was a four-month long interactive campaign, which featured the wrestlers in numerous videos promoting Gillette Fusion products. In August 2009, Rhodes, along with DiBiase, The Big Show and The Great Khali appeared on The Tonight Show with Conan O'Brien.

Personal life
Runnels is the son of Dusty Rhodes as well as the half-brother of fellow WWE superstar Dustin Rhodes, who is better known by his ring name "Goldust". He also has a sister, Kristin Ditto, who is a former Dallas Cowboys Cheerleader. On March 31, 2007 at the WWE Hall of Fame ceremony Runnels and Dustin, inducted their father, Dusty, into the Hall of Fame. He is also the nephew of professional wrestlers, Jerry Sags and Fred Ottman, and the godson of Magnum T.A., another wrestler.

Runnels has worn wrestling gear that is half polka dots and half gold, which is a tribute to his father, Dusty, and his half-brother Dustin, respectively. Additionally, his boots feature a Triforce symbol from the The Legend of Zelda series of video games, as Runnels is a big fan of the games, and has admitted to re-playing A Link to the Past yearly. Runnels is also a big comic book fan, and used to wear wrestling gear inspired by Archangel, a character from X-Men. He cites Omega Red and Cyclops as his favorite fictional characters, along with the Inhumans.