Before the 1927 season, Paschal returned his playing contract unsigned because of a salary dispute. By that time, the Yankees were forming the nucleus of what became the Murderers' Row teams of the late 1920s. He signed for an estimated $8,000 ($ today), a 13% raise. In the season-opening win against the Athletics, right field starter Babe Ruth struck out twice and popped out, forcing Huggins to replace him with Paschal in the sixth inning. As the last man ever to pinch-hit for Ruth, Paschal singled. In one of his few starts of the 1927 season, Paschal was a single short of hitting for the cycle, and almost had three home runs. Replacing the injured Bob Meusel, Paschal hit two home runs, a triple that was yards shy of a home run, and a double which bounced off the right field stands during an 11–2 rout of the Indians. Paschal did not play in the Yankees' 1927 World Series victory over the Pittsburgh Pirates. Overall, he played in 50 games, primarily as a pinch hitter. After the season, Paschal was discussed as a trade for Boston Red Sox pitcher Red Ruffing, but discussions fell apart (Ruffing was later acquired in a proposed trade during the 1930 season). Paschal was used heavily as a pinch hitter during the 1928 season. Huggins credited Paschal's timely pinch hitting as part of the Yankees' success that season. One of the few highlights of his season was his RBI pinch-hit double in the 10th inning that helped the Yankees beat the Chicago White Sox on August 4. Paschal played in 65 games that season, having a .316 batting average. He shared center field duties with Cedric Durst for an injured Earle Combs during the Yankees' win over the Cardinals in the 1928 World Series. He started the first and last games of the series on a platoon situation; Paschal faced left-handed pitchers and Durst faced right-handed pitchers. Before the 1929 season, Paschal and Durst were mentioned in several trade rumors, and Paschal was rarely used, appearing in only 42 games as a sixth outfielder in the season. A rare start came on June 1 against the White Sox, when he scored a run. On July 2, Paschal hit a pinch-hit home run for Herb Pennock in the seventh inning of a game against the Red Sox to give the Yankees a 3–2 win. He played in 42 games in his final season in the majors, posting a .208 batting average in 81 at-bats.