The single was nominated for a Grammy Award for Best Male Rock Vocal Performance, but lost to "Dig In" by Lenny Kravitz.

[1] "'Peaceful World' was extracted from a conversation with Pat Peterson, who's been singing backup in my touring band since 1981," Mellencamp explained to the Denver Post in an August 2001 feature.

The song's lyrics, which are sung in a duet form between Mellencamp and Arie, primarily deal with issues of race and prejudice.

The lyrics led it to be somewhat of a song of comfort following the September 11, 2001 attacks, being performed during The Concert for New York City along with a live acoustic version without Arie being included in Columbia Records' October 2001 benefit album God Bless America.

The music video of "Peaceful World", directed by Kurt Markus, shows Mellencamp and Arie in a mostly dark room, with only their faces shown.