In 2004, Higgins released the song "Ten Days" which documented her feelings following a break-up with her boyfriend before she travelled to Europe after leaving high school. Though they later reconciled, the relationship ended and subsequently inspired the lyrics for "Peachy". The song was written in half an hour at a friend's house where Higgins locked herself in a room with a guitar. She said of the song, "[i]t's all those mind games you play with someone you've just broken up with [...] They're pretending they've moved on; you're pretending you have, too, but neither of you has. It's ridiculous."
The song was recorded in 2006 in Los Angeles at producer Mitchell Froom's home studio. The music video was directed and shot by Australian filmmakers Paul Goodman and Alice Bell.