The original incarnation of Destroy All Monsters never widely released any official recordings, and by 1976 both Shaw and Kelley had exited to continue their graphic art careers, both later gaining considerable notoriety as underground talents. Niagara and Loren continued on, recruiting brothers Larry and Ben Miller (space guitar and saxophone, respectively); within six months, former Stooges guitarist Ron Asheton and onetime MC5 bassist Michael Davis had also signed on, pointing the group's sound in a more dynamic and energetic direction. Upon releasing their first-ever single, 1978's "Bored," Destroy All Monsters became darlings of the British music press, based largely upon the connection to the Stooges' legacy; "Bored" was soon set for U.K. release on the Cherry Red label, which licensed the record before ever even hearing it.

Even as a second single, "Meet the Creeper," was being readied for release, Destroy All Monsters was coming apart; tensions within the group had come to a head when Niagara left longtime boyfriend Loren to hook up with Asheton, and soon Loren, as well as the Miller brothers, left the band over creative differences. In response, Loren issued a 1979 live EP, The Days of Diamonds; a year later, he, the Millers, and drummer Rob King formed Xanadu, recording an EP, Black-Out in the City, co-produced by Kelley and Shaw. Meanwhile, the remaining members of Destroy All Monsters carried on until 1985 before finally disbanding. In the wake of a 1994 box set, the original lineup occasionally re-formed to play live and record new material. A concert set, Live in Tokyo & Osaka, appeared in 2008.