It was released in 1981 by record label Polydor as the first single from the band's fourth studio album, Juju.

Prior to recording the song, the band toured the UK in February of 1981 to premiere new material composed with guitarist John McGeoch.

When reviewing this era, Barney Hoskyns of NME described "Spellbound" as a "glorious electric storm," further adding, "Siouxsie and the Banshees are one of the great British bands of all time".

[9] In 2006, Mojo honoured McGeoch by rating him in their list of "100 Greatest Guitarists of All Time" for his work on "Spellbound".

[10] Johnny Marr of the Smiths stated on BBC Radio 2 in February 2008 that he rated guitarist John McGeoch highly for his work on "Spellbound": "It's so clever.