Following the band's first release, they had generated success with the underground Seattle rock scene and had secured a small cult following, largely due to the reputation they had built from their concert tour with Vendetta Red.

The production of the album was handled by Joe Reineke and T. Dallas Reed, with the majority of the lyrics composed by the band's singer and frontman Ryann Donnelly.

The band expressed the desire to become more diverse with their musical approach than on their debut album, citing a larger list of influences.

The album received positive reviews from music critics, who praised Donnelly's singing, the progression that the band had showcased from their prior work, and the humorous way that the morbid themes were expressed on the project.

[2] Vocalist Ryan Donnelly noted that during the production of the album the band didn't do drugs or drink alcohol, and instead spent their time playing video games and eating fast food.

[2] Between recording sessions, the band spent their loose time watching episodes of classic horror series like The Twilight Zone and The Outer Limits.

[2] Conceptual themes found within their first project are maintained on Fantastic Wounds, including lyrics inspired by science fiction and horror films.

[4][6] The Misfits in particular were a large influence to the album; their horror themed and often purposely over-the-top style to making music were important in shaping the way the band presented themselves in image.

[6] Donelly expressed an interest with progressing the style of music on their sophomoric effort, stating that she wanted to have a tighter focus this time around, and specifically noting that the song titles on Fantastic Wounds were more direct and confident in nature.

[6] The track showcases guitarist Steve Bonnell's math rock-driven and largely melodic riffs that dominate the opening song.

critic Sam Sutherland felt that the band had successfully progressed from their debut album, musing "more polished than their debut, this record possesses all the angular riffs and math-rock breakdowns of their previous work, but is greatly aided by a sense of cohesion between their colliding influences and disparate style of songwriting", describing the album "as fantastic as its title suggests.

"[9] Ernest Simpson of TrebleZine called Donnelly the Seattle-based Karen O, and wrote that "don't be surprised if Schoolyard Heroes leap to a major or at least a larger indie label after the success of Fantastic Wounds.

"[12] Roger Holland of PopMatters viewed that the band had begun as a juvenile pop-punk with only a few unique ideas, calling Fantastic Wounds a "thing of pure kinetic beauty".

But the new songs, with names like "Panic in the Year Zero", "Nightmare At 20,000 Feet" and "The Girl Who Was Born Without a Face" are confident, complex and strong enough to give this young band its own fierce identity.

"[14] Jessica Grose of Spin viewed that Donnelly seems "to be lobbying for goth poster girl of the new millennium", stating that the album successfully bordered on both metal and punk influences.

[7] Three Imaginary Girls mused that Fantastic Wounds maintained the "acrobatic inter-instrumental dynamics and savagely clever, at times genuinely affecting modern-life-as-horror-movie lyrics that defined their awesome debut, The Funeral Sciences", and noted that it "lacks a bit in the insouciant exuberance displayed by its predecessor.