Post-Setanta (Regeneration to Office Politics)
The band performed at V2001 Festival, and their 2001 album Regeneration attempted to remove the band still further from its association with comedy. Hannon hired producer Nigel Godrich to "remake" the band. Hannon ditched the suit and donned a Britrock band image. The album was a greater critical than commercial success, and soon after its release it was announced that the Divine Comedy were splitting up. However, within a year Hannon was touring again with a revised band line-up, playing a series of joint-headline gigs in the United States, United Kingdom and Ireland featuring both the Divine Comedy and Ben Folds.
A new album surfaced in the form of 2004's Absent Friends. The album struck a balance between the occasionally earnest sound of the band's later material and the lighter tone of the more popular releases. 2004 saw two performances featuring The Millennia Ensemble orchestra, one at the London Palladium (which was later released as a live DVD) and one at the Royal Albert Hall. In January 2005, Hannon announced that he had acquired the worldwide copyrights to all of his recorded output with his former record label, Setanta Records. He launched his own record label Divine Comedy Records in order to re-release his 1990s output.
Hannon's ninth album with the Divine Comedy, Victory for the Comic Muse, was released in June 2006. The bulk of the record was recorded over two weeks, much of it live rather than multi-tracked, hence a more spontaneous sound. The album featured Simon Little on bass, Andrew Skeet on keys, Tim Weller on drums and Ian Watson on accordion from the current band.
Hannon also provided vocals for songs on the soundtrack for the film of The Hitchhiker's Guide to the Galaxy released in 2005, working with Joby Talbot, the composer for the film and former Divine Comedy band member. This sci-fi connection continued in late 2006, when he contributed vocals to two tracks – "Song For Ten" and "Love Don't Roam" – on the Doctor Who: Original Television Soundtrack album. In an interview with Bullz-Eye.com, Hannon explained that, "literally, I was asked to add my vocal by the composer of the songs, who writes for the show. And I didn’t feel that I could say no, simply because I spent my childhood watching this programme. It would be just plain wrong to not do it." Hannon also lent his vocals to "Aliens", the last track on the Irish charity album The Cake Sale in 2006, organised by Brian Crosby of Bell X1 and featuring a variety of mainly Irish musicians.
In 2007, the first ten or so seconds of "Tonight We Fly" was used as the ending tune to BBC7's Digi Radio. The song was also used for an advertisement for the Airbus A340 airliner.
Meanwhile, Hannon took part in various projects: he recorded "Perfection As a Hipster", included in the God Help the Girl soundtrack, a soon-to-be-released musical film by Belle and Sebastian frontman Stuart Murdoch as well as the LP The Duckworth Lewis Method, together with Thomas Walsh of Pugwash. In March 2007 Neil Hannon's relationship with Parlophone came to an end.
On 31 May 2010, The Divine Comedy released their tenth album entitled Bang Goes the Knighthood on DC Records. As with Victory for the Comic Muse it was recorded in RAK studios in St John's Wood by Guy Massey and the orchestra was conducted by Andrew Skeet who was the arranger on this album. The album charted at 20 in the first week of release, making it their highest-charting album since Regeneration in 2001. The album itself was preceded by the download-only single "At The Indie Disco".
On 2 September 2016, The Divine Comedy released their eleventh album Foreverland. A live album featuring performances from the 2016–17 Foreverland tour, "Loose Canon", was released digitally on 16 February 2018 after being made available as a CD on the tour.
On 1 April 2019, the Divine Comedy announced a new single "Queuejumper", first played on BBC 6 Music on 3 April. It was followed by the announcement of Office Politics, the band's first double album, which was released on 7 June 2019. The release of "Queuejumper" was followed by the single "Norman and Norma", released on 16 May 2019, and an animated music video for the songs "Infernal Machines" / "You'll Never Work in this Town Again", released on 3 October 2019.