After reuniting in 1986 and undertaking two mammoth tours tours through 1987, The Monkees were relatively out of the limelight in 1988. The excitement and enthusiasm generated by the initial revival of the group in 1986 had made Monkee business big business, again. The 20th Anniversary Reunion Tour was a box office blowout, fueled largely by MTV airing the television series daily and in marathon showings. By 1988, however, Monkeemania Part II had cooled considerably. Because of a falling out with MTV in 1987, the trio lost a huge promotional venue for their first album of all new material since 1970, Pool It! As a result, the LP and its singles ("Heart and Soul" and "Every Step of the Way") did not experience the chart heights of their 1986 reunion single, "That Was Then, This Is Now" (a Top 20 hit with a music video that MTV played relentlessly), or the accompanying retrospective album (which went platinum during the 1986 tour).
As if all that wasn't enough, The Monkees became involved in a lawsuit with their manager David Fishof in 1988. Until those legal issues could be rectified (which were ultimately settled in the group's favor), Micky, Davy, and Peter pursued individual endeavors and placed The Monkees on sabbatical.
Micky returned to directing, the field that occupied his time in the years leading up to the 1986 Monkees reunion, while also enjoying his favorite pastime, polo. Davy found his way back to the stage in Oliver!, this time playing the role of Fagin at the Kansas City Starlight Theatre. He also released an album of all new material, Incredible, and conducted a successful book signing tour for his autobiography, They Made a Monkee Out Of Me. Peter was on the road playing clubs, including the Speakeasy in New York City. And Michael was busy promoting his new movie, Tapeheads, starring John Cusack and Tim Robbins.
By mid-year and with no Monkees projects in sight, enthusiasm remained strong among the faithful, and fans gathered in Los Angeles for a Monkees convention in the summer of 1988.
After finally resolving the legal issues with their former manager, The Monkees started to discuss plans for fresh endeavors. There were murmurs of recording new material, and talks of a Christmas album in time for the 1988 holiday season never came to fruition. Instead, the trio left for Australia in September and played a series of concerts, their first in that country since 1968.
The only other public appearance by the group in 1988 came in August at a Monkees convention in Chicago, Illinois. Peter played a solo show at the Vic Theatre in conjunction with the gathering, and Micky and Davy joined him onstage for the encore performances of "Daydream Believer" and "I'm a Believer."
The Monkees returned in full force in 1989, and were greeted warmly in Europe for their first performances there since 1967, and in Japan, where they had last visited in 1968. A North American tour followed, playing to less fanfare and smaller audiences than the 1986 and 1987 tours had received. However, a lot of attention was generated when The Monkees were awarded a star on the Hollywood Walk of Fame in the summer of 1989, an event that was capped by a sold out show in Los Angeles with Michael Nesmith.