After returning from the UK to Melbourne, Underwood began working with singer/songwriter Charlie Rooke (formerly of The Sharp) and they formed a jazz-swing band called Corduroy Lounge.

In early 2001, she decided to leave the group in pursuit of a role in the Harry M. Miller's production of Hair.

Underwood later spoke of the deep depression she fell into as a result of what most people thought was a foolish career decision, despite the fact that Bardot's commercial success after her departure was muted.

She subsequently turned the tables and made a successful comeback, earning respect from entertainment critics for her resilience.

In June 2006, Underwood re-emerged with dance act T-Funk on the track "Be Together", topping the ARIA Club charts for five consecutive weeks.

[1] In April 2020, to commemorate the 20th anniversary of the release of their debut single "Poison", Underwood and Bardot bandmates Tiffani Wood and Belinda Chapple reunited remotely online to perform the song.

[3] In September 2021, it was announced that Underwood and Chapple would professionally reunite as a duo under the name Ka'Bel, with their debut single "Broken Hearted" released on 15 October 2021.

[4] In 2002, Underwood appeared on the series Undercover Angels, a reality TV show which aimed to give a helping hand to people in need.