Townshend's first full-fledged solo effort was Empty Glass (1980), which sold a million copies, reached the Top Five, and featured the Top Ten hit "Let My Love Open the Door," as well as the minor hits "A Little Is Enough" and "Rough Boys." He followed it in 1982 with All the Best Cowboys Have Chinese Eyes, which was less successful. Nevertheless, he felt he could no longer write for the Who, and at the end of the year, the group disbanded following a North American tour. Townshend released Scoop, a two-disc compilation of demos, in 1983 (a second volume appeared in 1987).

In 1985, he returned to thematic efforts with the album White City - A Novel, which included the Top 30 single "Face the Face." The same year, he published a book of short stories, Horse's Neck. As part of the White City project, he appeared in an accompanying film, for which he organized a band called Pete Townshend's Deep End. The unit played only a few gigs, but one was videotaped and recorded, resulting in the 1986 album Pete Townshend's Deep End Live! In 1989, he released an album based on poet Ted Hughes' children's story, The Iron Man. The record featured guest vocals by John Lee Hooker and Nina Simone, as well as two tracks featuring the three surviving members of the Who. Simultaneous with the album's release, Townshend embarked on a reunion tour with the Who, an event that overshadowed The Iron Man, which enjoyed only modest sales.

In 1993, Townshend delivered Psychoderelict, another conceptual work, to mixed reviews and poor sales. By that time, however, he had successfully reinvented himself as a Broadway tunesmith -- the theatrical production entitled The Who's Tommy had become a runaway hit, earning him a Tony Award and prompting him to pursue more stage musicals. None of these came to fruition during the rest of the 1990s, though, and by the end of the decade, he was releasing live and archival recordings (notably the long-delayed Lifehouse) through his website and planning another reunion with the Who.