On its initial release, Souvlaki peaked at number 51 on the UK Albums Chart and was greeted with tepid reviews from critics.

"[4] While touring Europe in early 1992, Slowdive began tentative work on Souvlaki, writing and recording multiple takes of around 40 potential songs.

[4] According to the band's chief songwriter Neil Halstead, these early songs were influenced by Joy Division and the David Bowie studio albums Low (1977) and Lodger (1979).

[3] At the suggestion of Slowdive's manager, Halstead temporarily exited the recording sessions for Souvlaki in the summer of 1992 and travelled to Wales, where he stayed in a rented cottage for around two weeks.

[4] By the time he returned, Halstead had written a new batch of "stark and much more personal" songs, including "Dagger", which would make the final album.

[4] He has said that the lyrics he penned during this period were informed by both his solitary living conditions in Wales and his feelings about the end of his relationship with Goswell.

"[19] John Mulvey of NME reacted with muted praise, calling Souvlaki "another exemplary product from spangly guitar heaven" yet ultimately deeming it a "pretty, but unfulfilled" album.

[13] In 2015, Slowdive and Alan McGee stated that they felt that Souvlaki was released at a time when dream pop and shoegaze had become unfashionable and the music press were more interested in Britpop bands such as Oasis.