"[4] Lowe has not released a solo studio version of the song, but plays it regularly in concert, and live versions have appeared as B-sides of his 1982 double single "My Heart Hurts", and his 1994 EP True Love Travels on a Gravel Road, on the radio compilations KGSR Broadcasts Vol.

3, Q107's Concerts in the Sky: the Campfire Versions, and Live at the World Cafe 10th Anniversary, some with solo acoustic guitar and some with different full bands.

Costello explained, "I do recall that Nick was pictured on the sleeve wearing a pair of my dark hornrims, clutching my Jazzmaster, with the name 'Costello' inlaid on the neck.

[8] The video for the song, directed by Chuck Statler,[9][10] was filmed in Vancouver in November 1978, while Costello and his band were in the city to perform at Pacific Coliseum.

Live versions appeared on Rock and Roll Hall of Fame, Volume 7: 2002–2003, and 2012's The Return of the Spectacular Spinning Songbook, both by Elvis Costello and the Imposters.

"[13] AllMusic wrote, "Costello and his band tore into the song with a passionate ferocity that was rare even for one of the most solid and hard-driving pop acts of their day.

If the original was a farewell hymn, in Costello's hands '(What's So Funny 'Bout) Peace, Love, and Understanding; became a wake-up call, and no one who heard it could escape the urgency of its message.

PopMatters stated, "While it was possibly intended as ironic when it originally dripped from Lowe's pen, the Attractions baptize it by fire and issue forth the ultimate punk anthem.

"[15] "(What's So Funny 'Bout) Peace, Love, and Understanding" has appeared on several lists of the greatest Elvis Costello songs, including ones compiled by The London Telegraph[16] and uDiscoverMusic.

[18] Additionally, Costello's version has appeared on several lists of the best covers of all time;[19][20][21][22] in one such list, Paste Magazine concluded, "Its greatest triumph, however, rests with its timelessness and continued relevance, as newer bands continue to cover this song, often citing Costello's version as the source of inspiration.

"[19] A version of the song was included on the soundtrack album for the 1992 film The Bodyguard, which sold 17 million copies in the United States alone.

This version was performed by jazz singer Curtis Stigers (who also used it as a B-side to the single "Sleeping with the Lights On" from his eponymous debut album, which had been released the previous year) and produced by Danny Kortchmar.

According to Will Birch's book on pub rock, No Sleep Till Canvey Island, the cover royalties from Stigers' version of the song made Lowe wealthy.

[23] A karaoke version of the song, sung by Bill Murray's character Bob Harris, is included in the 2003 film Lost in Translation.

In 2004, "(What's So Funny 'bout) Peace, Love and Understanding" was regularly performed as an all-star jam on the Vote for Change tour, which featured a rotating cast of headliners.

This version of the song featured Bruce Springsteen and the E Street Band,[25] the Dixie Chicks, Eddie Vedder, Dave Matthews, and John Fogerty with Michael Stipe, Bonnie Raitt, Keb' Mo', and Jackson Browne.

[27] In May 2020, during the COVID-19 pandemic, Sharon Van Etten and Queens of the Stone Age's Josh Homme released a cover of the song accompanied by an official video which was shot at the artists' respective homes.