In June 2007, The Booksmith was sold by its founder Gary Frank to married couple Christin Evans and Praveen Madan.

Describing the changes to the bookstore, "The new owners gutted the clogged entranceway, feng shui-ed the interior, and gave it a cool Victorian steampunk black-and-teal paint job... with more than 200 in-store author readings a year, Booksmith is more of a literary mecca than ever.

Among the celebrated authors who have appeared at past Booksmith events are the Nobel Prize–winning Polish poet Czesław Miłosz, science fiction great Ray Bradbury, gonzo journalist Hunter S. Thompson, children's author Lemony Snicket, rock legends Neil Young and Patti Smith, and photographers Richard Avedon and Annie Leibovitz.

Notably, Beat generation poet Allen Ginsberg gave his last ever reading at The Booksmith, a few months before his death.

Among the musicians who have appeared at the store are Grateful Dead band members Phil Lesh and Mickey Hart, as well as Grace Slick (Jefferson Airplane), and Ray Manzarek (The Doors).