Queenadreena began working on their third studio album, which became The Butcher and the Butterfly, as early as 2002 with the release of the controversial "FM Doll", which discusses child beauty pageants and the 1996 murder of JonBenet Ramsey, as a stand-alone single under Rough Trade Records whilst the band was touring in promotion for their second studio album, Drink Me. After they were dropped from Rough Trade, the band continued to work on the album, and the slightly-retitled "FM Doll" was re-released on 21 March 2005 as the album's lead single.
The Butcher and the Butterfly was released in May 2005 and failed to chart in any territories. "Medicine Jar" was released as the album's second single in June 2005. The single's b-side, "Seven Sins", appeared as a bonus track on the Japanese release of the album. The US edition of the album differs significantly from releases in other territories; "Razorblade Sky" and "Pretty Like Drugs" from Drink Me are featured, while "Princess Carwash (Slight Reply)", "Cold Light of Day", and "Butcher and the Butterfly" are omitted.