After extensive touring throughout 2005 with The Bad Seeds in support of the band's double album, Abattoir Blues/The Lyre of Orpheus, frontman Nick Cave began composing new songs on guitar. He had rarely played the instrument and his rudimentary playing gave the new material a rawer feel than much of The Bad Seeds' output at the time. Cave formed Grinderman with fellow Bad Seeds' musicians Warren Ellis, Jim Sclavunos and Martyn P. Casey to experiment with his new material. He had previously used this same line-up to demo and cowrite material for Abattoir Blues/The Lyre of Orpheus. The newly formed side project entered the Metropolis Studios in London to record the original Grinderman demos and it was this material that would eventually become the basis for the band's eponymous debut album. The album was recorded with long-time friend, producer Nick Launay in April at the RAK Studios, London and mixed in October at the Metropolis Studios.
The band's debut single, "Get It On", was Grinderman's first release on 8 January 2007. "No Pussy Blues", now one of the band's signature songs, was released as the band's second single on 19 February, in order to promote the upcoming album. Grinderman was released in March 2007 and was applauded by critics for its rough energy, similar to that of Cave's celebrated post-punk project The Birthday Party. Alongside its release, the band's official website was unveiled the same week and featured The Grinderman Podcast, a podcast series of recording segments from the band's writing sessions. New episodes were said to appear regularly over the following weeks however, only five recordings appeared. The band made their live debut at the All Tomorrow's Parties Festival in Somerset the following month and on 30 April, the band released the third and final single from the album, "(I Don't Need You To) Set Me Free". Following the eventual releases, the band appeared on the BBC television show Later... with Jools Holland on 11 May, performing "Honey Bee (Let's Fly to Mars)" and "No Pussy Blues." To finish promotion of the album in the United Kingdom, the band ended with a one-off show at The Forum in London on 20 June.
Grinderman made their network television debut in the United States on the CBS television show the Late Show with David Letterman performing "Honey Bee (Let's Fly to Mars)" on 23 July 2007. The band also opened for The White Stripes at their Madison Square Garden show the following day on 24 July 2007, followed by a show in Chicago and two shows in San Francisco. The band then embarked on a theatre tour of Australia, opening for a Nick Cave "solo" set, which consisted of the same band members. Grinderman were one of the headliners at the 2008 Roskilde Festival.
Grinderman also contributed two original songs, "Dream (Song for Finn)" and "Song for Frank", to the soundtrack of the Wim Wenders film Palermo Shooting in 2008. "Honey Bee (Let's Fly to Mars)" plays during the closing credits of True Detective, HBO, Season 1, Episode 4, "Who goes there?", 9 February 2014.
