"They Might Be Giants" was the second album to be released on the fledgling Bar/None label, with They Might Be Giants as the second group signed to the independent label. Many of the songs on the album existed in a demo form on the band's 1985 demo tape, which was also technically self-titled, though many were re-recorded or given new mixes for the commercial album. The material from the tape was recorded at Studio PASS in New York City with the assistance of Alex Noyes, who permitted the band to use the studio after it closed each day. Additional recording and mixing was done at Dubway Studios.