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"Palo Santo" is the second full-length release for the British electronic pop trio led by Olly Alexander features contributions from such artist as Greg Kurstin, Steve Mac, Julia Michaels, Justin Tranter, and Two Inch Punch. It was released on 6 July 2018 and was written and recorded in the 18 months following the end of the band's world tour for Communion. It is supported by the lead single "Sanctify", released on 7 March 2018, which reached number 25 on the UK Singles Chart. Years & Years revealed the track listing on 24 April 2018. Their second single "If You're Over Me" was released on 10 May 2018, and peaked at number six on the UK Singles Chart. The first promotional single and title track "Palo Santo" was released on 22 June 2018. "All for You" was released five days later on 27 June 2018.

The album and its imagery will continue the concept of a genderless dystopian society populated by androids known as Palo Santo (Spanish for "holy wood"), first shown in the music video for "Sanctify". A campaign featuring a messenger bot interacting with fans on the band's Twitter account, billboard posters with QR codes and pages from a graphic novel has also been launched for the album. The album also features the full-length version of the song "Hypnotised", previously only used in part in a short film for fashion company H&M's collection by British designer Erdem.

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