As a record producer, Costello worked with The Specials, Squeeze and The Pogues. As a guest vocalist, he contributed to Hal Wilner's Weird Nightmare, a celebration of the music of Charles Mingus. He wrote lyrics for the Mingus composition, This Subdues My Passion, which was performed with the Mingus Big Band at the Free Jazz festival in Brazil in 1997. Costello once again appeared in two live performances with the Mingus Band in 2001 and again in 2003 Costello has recorded and appeared with, among others, Sam Moore, Bob Dylan, The Jazz Passengers, Neil Young, Lucinda Williams, Dan Hicks, The Chieftains, The Count Basie Orchestra, The Mingus Orchestra and with the gospel group, The Fairfield Four. As a guest vocalist he is featured on The Fairfield Four's Couldn't Hear Nobody Pray album, performing the McCartney/Costello composition, That Day Is Done. The album went on to win a Grammy Award in 1997.
He has also performed on tribute albums to Joni Mitchell, Gram Parsons and The Grateful Dead. Costello also worked once again with record producer T-Bone Burnett on the Costello/O'Riordan composition My Mood Swings, which was featured in the Coen Brothers' motion picture The Big Lebowski.
Following their successful collaboration on the Grammy-nominated song God Give Me Strength, which was specially composed for the Allison Anders-directed film Grace Of My Heart, Elvis Costello and Burt Bacharach once again collaborated in the acclaimed album Painted From Memory. The album features Steve Nieve, of The Attractions, on keyboards with Bacharach on piano, as well as a 24-piece string section, brass and woodwinds. Costello and Bacharach won a Grammy Award for "Best Collaboration with Vocals - 1998" for the album track, I Still Have That Other Girl.
In 1999 Costello was asked to record a version of Charles Aznavour's She to feature on the soundtrack of Richard Curtis's much acclaimed film Notting Hill. In addition Costello also recorded, with Burt Bacharach, a version of the classic I'll Never Fall In Love Again for Mike Myers' Austin Powers 2, The Spy Who Shagged Me. He also appeared in a cameo role in the film. Also during 1999 Costello completed two world tours with his long-time collaborator and ex-Attractions pianist, Steve Nieve.
In April 2000 Costello was nominated for a BAFTA for his contribution to the score of Alan Bleasdale's adaptation of Oliver Twist for a Channel 4 series. 2000 also saw Costello working on several projects including a commission to write the score for a production of A Midsummer Night's Dream by the Aterballetto dance company of Reggio Emilia, Italy. In late 2000 he featured as a vocalist on Roy Nathanson's album, The Fire At Keaton's Bar & Grill, which received its critically acclaimed performance premiere in New York in June 2001. In addition, he worked on a new project with mezzo soprano, Anne Sofie von Otter, with whom he previously worked in 1996. This collaboration resulted in a new album, released in Spring 2000, entitled For The Stars, which was produced by Costello and features the voice of Anne Sofie von Otter.
In the Spring of 2002 Costello released his first rock & roll album since joining the Island Def Jam/Universal family entitled When I Was Cruel. He has recently finished recording a new album scheduled for release in September 2003.
During his long career Costello has received several prestigious awards, including two Q Magazine Awards, two Ivor Novello Awards, the coveted Nordoff-Robbins Silver Clef Award and a Grammy for his collaboration with Burt Bacharach in 1998. In 2003 he was nominated for three Grammys for When I Was Cruel and was also inducted into the Rock & Roll Hall of Fame on 10th March. In May 2003 Costello was awarded ASCAP's prestigious Founders Award.