Prior to Spooky Tooth, four of the band's five founding members had performed in the band Art (formerly known as The V.I.P.s). Following the dissolution of Art, the members' of that band's final line-up (guitarist Luke Grosvenor, vocalist Mike Harrison, drummer Mike Kellie, and bassist Greg Ridley) joined forces with American keyboardist/vocalist Gary Wright in October 1967 and formed Spooky Tooth. Wright was introduced to the members of Art by Chris Blackwell, founder of Island Records.
The album Spooky Two (1969) was the last album release by the original lineup. It included the song "Better by You, Better than Me", which was covered by Judas Priest on their release Stained Class (1978).
Ridley joined Humble Pie in 1969 and was replaced by Andy Leigh for the album Ceremony (1969). The experimental nature of Ceremony received mixed reviews and following its release Wright left the band. Harrison, Grosvenor and Kellie remained and recorded the album The Last Puff, with members of Joe Cocker's Grease Band.
In the autumn of 1970 the band embarked on a European tour that was undertaken with line-up of Harrison, Grosvenor, Kellie, keyboardist John Hawken (ex-Nashville Teens) and bassist Steve Thompson. Harrison and Wright reformed Spooky Tooth in September 1972 with a different line-up. The best known member of these line-ups was guitarist and vocalist Mick Jones. Mike Patto replaced Harrison when they recorded The Mirror (1974). They disbanded in November 1974.