The album was rejected by Sire Records due to Landy's lyrics and the inclusion of "Smart Girls", a rap song.

In 1987, Wilson agreed to a two-album solo contract offered by Sire Records president Seymour Stein.

[4] In May 1989, Wilson recorded "Daddy's Little Girl" for the film She's Out of Control, and in June, was among the featured guests on the charity single "The Spirit of the Forest".

[9] Critic Matthew Horton characterized the album's production style as "more bombastic and opulent than the subtler shades of Brian Wilson.

[6] The Traveling Wilburys' Bob Dylan and Tom Petty, whose bandmate Jeff Lynne had co-produced a track on Brian Wilson, were featured on "The Spirit of Rock and Roll".

[12] Matt Dike, known for his recent hits with hip-hop acts Tone-Loc and Young MC, was asked to co-produce "Smart Girls", a rap song.

Two iterations of Sweet Insanity were presented to Sire Records, in 1990 and 1991, and both mixes were rejected due to the inclusion of "Smart Girls" and Landy's lyrics.

[5] According to Sire executive Howard Klein, "If [Sweet Insanity] was pathetic, Eugene Landy's lyrics were full of psychological mumbo jumbo.

[23] In 2004, re-recorded and slightly rewritten versions of "Rainbow Eyes", "Make a Wish", and "Don't Let Her Know She's an Angel" were included on Wilson's album Gettin' In over My Head.

'"[29] In the 2014 book The Greatest Albums You'll Never Hear, contributor Matthew Horton praised Sweet Insanity for having "plentiful merits", despite some "missteps".