During his NHL playing career, Melrose played 300 games, scoring 10 goals, with 23 assists and 728 penalty minutes. He also played in 7 playoff games with the Toronto Maple Leafs, assisting on 2 goals and receiving 38 penalty minutes.

Upon retirement, Melrose immediately began coaching. He coached the 1987-1988 season with the Medicine Hat Tigers of the WHL, leading them to a 44-22-6 record and a Memorial Cup title. He coached the next season with the Seattle Thunderbirds before jumping to the AHL and coaching the Adirondack Red Wings. He spent three years with the Red Wings, leading them to a Calder Cup win in the 1991-1992 season. Beginning with the 1992-1993 season, Melrose coached the NHL's Los Angeles Kings, leading them to the 1993 Stanley Cup Finals.

Melrose also spent many years as a NHL analyst for ESPN's hockey coverage.