Neo-Psychedelia is a genre that saw a rise to prominence in the 90s, but had been in existence for some years. Early acts (such as The Soft Boys or The Church) were very Rock-based, featuring clean guitars and some additional instrumentation and effects (i.e. reverb, distortion).

It has developed to be characterized by its layering of sounds or instruments to create a surreal sonic atmosphere. Though synthesizers, samples, and other production techniques have fallen more into favor in recent years, usually many different instruments (or the illusion of them) - such as string sections, organs, or bells - are used for both the foreground and background of songs. Additionally, everyday or non-musical sounds may be utilized.

The genre as a whole is owing in large part to the Psychedelic Pop and Psychedelic Rock bands of the '60s and '70s, however Neo-Psychedelia may not be explicitly rooted in either pop or rock as experimenting with sounds and song structures is common. Notable acts include The Flaming Lips, Spiritualized, and Animal Collective.