"Squashed Nigga" was first featured in the eleventh episode of the Australian mockumentary series, Angry Boys, and was sung by comedian Chris Lilley (S.mouse), who starred as the six main characters in the series. During the episode, S.mouse arrives back home, after launching his new album, The Real Me, at a club in Los Angeles, California, to a crowd who are less than pleased. He realises that he isn't expressing the real him, and decides to read Daniel's (another fictional character portrayed by Lilley), letter about an Aborigine child named Wally who was crushed by a truck. S.mouse then writes a song about the incident called "Squashed Nigga", and instead of rapping on the song, S.mouse decides to sing it.
"Squashed Nigga" was released as the third single off the Angry Boys official soundtrack album on 21 July 2011.
Chris Lilley announced on his Twitter page that "Squashed Nigga" was available for download in the iTunes Store in the United States on 7 February 2012, less than a week before the Angry Boys finale was set to air in the United States.