After finding moderate success with his self-produced solo effort Ultra Vivid Scene, Kurt Ralske returned to the studio in November 1989 to record a follow-up. This time, Ralske brought in producer Hugh Jones, who had previously worked with Echo & the Bunnymen, Modern English, and The Damned, and a handful of session musicians. Two songs featured guest performances: "Special One," with vocals by Kim Deal of the Pixies, and "Beauty #2", with pedal steel work by B.J. Cole. According to Ralske, the title Joy 1967-1990 was intended to be a tombstone inscription.

Upon completion of the album, Ralske recruited a full band consisting of Collin Rae on guitar, Byron Guthrie on drums, and Josephine Wiggs on bass, allowing Ultra Vivid Scene to go on tour for the first time in the spring of 1990.

The album debuted on May 7, 1990, to generally positive reviews. Writing for the Chicago Tribune, Bill Wyman described Joy as a "dizzying, insular tour de force" and awarded it three out of four stars. Karen Schoemer's brief writeup in the New York Times concluded that the album "at times seems too contrived, but Mr. Ralske's own joy in the sounds he creates is irresistible." In the Telegram & Gazette, Craig Semon wrote "Even though consistency and clarity are not the band's strong points, Ralske and his bandmates deliver an interesting if not well-wrapped package in 'Joy 1967-1990.'"Allmusic praised "the gossamer web of acoustic and electronic instruments and Ralske's knack for melodies" but found fault with the "dopey lyrics".

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