2012–2016: In the Lonely Hour
Smith was featured on the Disclosure song "Latch", which was released on 8 October 2012 and peaked at No. 11 on the UK singles chart. In February 2013, Smith released the first single from their debut studio album, "Lay Me Down", and later in the year featured on Naughty Boy's single "La La La". It was released on 19 May 2013 and peaked at No. 1 on the UK singles chart. Smith's debut extended play (EP) Nirvana was released the following year. The first song on the EP, titled "Safe with Me", is produced by Two Inch Punch and was first broadcast on MistaJam's BBC Radio 1Xtra show on 24 July 2013. The second song on the EP is titled "Nirvana" and is produced by Craze & Hoax and Jonathan Creek. The EP also includes Smith's acoustic solo version of "Latch" and a live version of "I've Told You Now". Smith released the Disclosure, Nile Rodgers, and Jimmy Napes collaboration "Together" on 25 November 2013 as the only single from Settle: The Remixes. In December 2013, Smith was nominated for the Brit Critics' Choice Award 2014 and the BBC's Sound of 2014 poll, winning both.
The second single from Smith's debut studio album, titled "Money on My Mind", was released on 16 February 2014. It was announced on 16 December that Smith's debut studio album, titled In the Lonely Hour, would be released on 26 May 2014 through Capitol Records UK. Smith described the album as "all about unrequited love" stemming from personal experience, having never been loved back by any previous love interests. The album reached number one in the UK Albums Chart and number two on the US Billboard 200, and by 5 November it had become the second biggest selling album of 2014 in the US behind only 1989 by Taylor Swift. In January 2015, In the Lonely Hour was named the second best selling album of 2014 in the UK, behind x by Ed Sheeran.
A live version of album track "I've Told You Now", performed at St Pancras Old Church in St Pancras, London, was made available as a free download as part of an Amazon.com promotion on 27 December 2013. The album track "Make It to Me", co-written by Howard of Disclosure and Jimmy Napes, was made available as a free download as part of an iTunes Store promotion on 13 January 2014. Smith went on their debut American headlining tour in the second quarter of 2014, with a setlist of primarily new material. On 20 January 2014, Smith made their American television debut performing "Latch" with Disclosure on Late Night with Jimmy Fallon. Smith also performed on Saturday Night Live (SNL) on 29 March 2014, performing the gospel-tinged "Stay with Me" and an acoustic version of "Lay Me Down". "Stay with Me" reached number one on the UK singles chart and number two on the US Billboard Hot 100. The fourth single from the album, "I'm Not the Only One", reached No. 3 in the UK and No. 5 in the US. Smith performed "Stay With Me" live at the 2014 MTV Video Music Awards on 24 August at The Forum in Inglewood, California. On 15 November 2014, they joined the charity group Band Aid 30 along with other British and Irish pop acts, recording the latest version of the track "Do They Know It's Christmas?" at Sarm West Studios in Notting Hill, London, to raise money for the Western African Ebola epidemic.
In 2015, it came to light that the American singer Tom Petty, noting similarities between "Stay with Me" and his 1989 hit song "I Won't Back Down", had negotiated an out-of-court settlement with Smith in October 2014. Petty and co-composer Jeff Lynne were awarded 12.5 percent of the royalties from "Stay with Me", and the names of Petty and Lynne joined James John Napier (known professionally as Jimmy Napes) in the ASCAP song credit. At the 57th Annual Grammy Awards, held on 8 February 2015, at the Staples Center in Los Angeles, California, Smith performed "Stay with Me" and also received four Grammy Awards: Best New Artist, Record of the Year and Song of the Year (for "Stay with Me") and Best Pop Vocal Album (for In the Lonely Hour). At the Brit Awards 2015 held at The O2 Arena in Greenwich, London on 25 February, they performed "Lay Me Down", and won the Brit Awards for British Breakthrough Act, and Global Success. In March 2015, "Lay Me Down" was re-released as the sixth single from the album, peaking at No. 8 on the Billboard Hot 100 (Smith's third US top 10 single). The same month, Smith recorded another version of the song, featuring John Legend, for the British charity telethon Comic Relief, which reached number one in the UK. At the 2015 Billboard Music Awards on 17 May, Smith received three Billboard Awards: Top Male Artist, Top New Artist, and Top Radio Songs Artist. They featured on Disclosure's single "Omen", which was released on 27 July 2015.
On 8 September 2015, Smith and Jimmy Napes confirmed that they had composed "Writing's on the Wall", the theme song to Spectre, the 24th James Bond film. The song was released on 25 September 2015 and became the first James Bond theme to reach number one in the UK. On 19 October, Smith was presented with two Guinness World Records—one for recording the first James Bond theme song to go to number one in the UK and another for scoring the most consecutive weeks in the UK top 10 by a debut album, for In the Lonely Hour.
At the 73rd Golden Globes on 10 January 2016, they received the Award for Best Original Song for "Writing's on the Wall". On 14 January, the song earned Smith an Academy Award nomination for Best Original Song. In the nominations for the Brit Awards 2016 announced on 14 January, the song was among the nominees for Best British Video. Smith performed "Writing's on the Wall" at the Academy Awards on 28 February and, along with Napes, collected the prize for Best Original Song. In their acceptance speech, Smith referenced an article by actor Ian McKellen published before the awards ceremony that claimed no openly gay man had won an Oscar for Best Actor; Smith misquoted McKellen as saying that no gay man in general had won an Oscar. This was quickly discredited by openly gay recipient Dustin Lance Black, but McKellen mentioned that the error "doesn't detract" from Smith's achievement.