The band had originally planned to release an album entitled Creatures of Habit produced by Matt Hyde. Columbia Records did not approve of the recordings and shelved the album a few weeks before it was supposed to be released. The band re-entered the studio, this time with British producer Chris Kimsey, and emerged with Candy from a Stranger. Most of the songs featured were previously recorded during the Creatures of Habit sessions. Drummer Sterling Campbell left the band after the album was completed.
"I Will Still Be Laughing" achieved fame after it was featured in the closing credits of the 1998 comedy BASEketball. It is also the band's last single to date to appear on Billboard's Modern Rock and Mainstream Rock charts.