Steely Dan originates from Annandale-on-Hudson, New York. The band’s name is in reference to the steam-powered dildo, “Steely Dan III from Yokohama,” in William S. Burroughs' 1959 novel Naked Lunch.

The band’s only permanent members were Walter Becker and Donald Fagen, but they have had many temporary members over the years, most notably Jeff “Skunk” Baxter, Denny Dias, Jim Hodder, David Palmer, Royce Jones, Michael McDonald, and Jeff Porcaro.

The original members recorded their final studio album together, Everything Must Go, in 2003. In 2017, Becker died from complications related to esophageal cancer.