It is the eighth track and third single from the band's second and final studio album, Grinderman 2, and was released on 14 March 2011 on Mute Records.

Produced by Nick Launay and written collectively by vocalist Nick Cave, multi-instrumentalist Warren Ellis, bassist Martyn P. Casey and drummer Jim Sclavunos, the song has been described as an "atypically straightforward love song" and was written for Cave's wife, Susie Bick.

Upon its single release, "Palaces of Montezuma" received positive critical acclaim, though the song failed to chart.

The music was composed by multi-instrumentalist Warren Ellis, bassist Martyn P. Casey and drummer Jim Sclavunos and has been described as "a meditative pop song that you can either boogie to, or kiss your baby goodnight to.

"[5] Duffy added "it could be a really huge, amazing coincidence" but considered taking legal action if Grinderman's management did not respond to his claims.

Artrocker magazine awarded the single a full five stars, and said the song "gives Cave his most soulful, intimate and accessible vocal since 'Into My Arms', delivered to a subtle but groovy dance beat and a tender gospel atmosphere.

"[1] Pitchfork Media reviewer Sean Fennessey referred to the song as "a 'We Didn't Start the Fire' for heroin addicts, haunted by visions of Miles Davis, Marilyn Monroe, JFK, and 'a custard-colored super-dream of Ali MacGraw and Steve McQueen'" and called it "unhinged and unerringly beautiful.