Subsequently, it appeared on a number of compilations and "Best of" albums as well as the Deluxe Edition of Exodus and the 2002 CD reissue of Legend.

The song was written by Bob Marley as a positive response to the release of a cover version of Junior Murvin's "Police and Thieves" by English punk band the Clash, on their first LP.

Referring to the party of the title of the song, the lyrics mention several punk and reggae groups: "The Wailers will be there, the Damned, the Jam, the Clash – Maytals will be there, Dr. Feelgood too".

Adrian Sherwood of On-U Sound records has used the song title to define a zeitgeist at the end of the 1970s in England, saying of the period, "The Punky Reggae Party was full on.

Island Head musicians include Jamaican guitarist Mikey "Mao" Chung who is known for being part of the Peter Tosh band, and Andy Bassford, known for playing with Dennis Brown and Toots and the Maytals.