The Stooges' second album was recorded in May 1970 with producer Don Gallucci, former member of The Kingsmen. The sessions were chaotic and marked by drug use. The band sought a freer, more jazz-influenced sound, with long improvisations and prominent saxophone by Steve Mackay.
The album was released in July 1970. Unlike the debut, 'Fun House' was recorded live in the studio with minimal overdubs. The track 'L.A. Blues' is an almost five-minute improvisation featuring screams and extreme distortion. Sales were low, but critics consider it a proto-punk masterpiece.
The cover features a photo of the band in an alley, taken by Ed Caraeff. The album has been reissued multiple times, including a deluxe edition with alternate takes. Its influence extends to punk, noise rock, and experimental rock.