Cobain had quoted Young's lyric "It's better to burn out than fade away" (a line from "My My, Hey Hey") in his suicide note. Young had reportedly made repeated attempts to contact Cobain prior to his death. Young and Pearl Jam performed "Act of Love" at an abortion rights benefit along with Crazy Horse, and were present at a Rock and Roll Hall of Fame dinner, sparking interest in a collaboration between the two. Still enamored with the grunge scene, Young reconnected with Pearl Jam in 1995 for the live-in-the-studio album Mirror Ball and a tour of Europe with the band and producer Brendan O'Brien backing Young. 1995 also marked Young's induction into the Rock and Roll Hall of Fame, where he was inducted by Eddie Vedder.
In 1995, Young and his manager Elliot Roberts founded a record label, Vapor Records. It has released recordings by Tegan and Sara, Spoon, Jonathan Richman, Vic Chesnutt, Everest, Pegi Young, Jets Overhead, and Young himself, among others.
Young's next collaborative partner was filmmaker Jim Jarmusch, who asked Young to compose a soundtrack to his 1995 black-and-white western film Dead Man. Young's instrumental soundtrack was improvized while he watched the film alone in a studio.
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