Following the release of The Microphones' Mount Eerie album, Elverum announced that he would no longer use the Microphones moniker, opting instead to record under the name Mount Eerie, after the area in Anacortes, WA called Mount Erie. In an interview with CITR-FM's Discorder in September 2003, Elverum gave his reasons for this change: "Mount Eerie is a new project. The Microphones was completed, or at least at a good stopping point. I did it because I am ready for new things. I am new." Around this time, Elverum also changed the spelling of his own surname (previously, Elvrum).
The first Mount Eerie releases included a limited edition CD-R of new recordings (Seven New Songs of "Mount Eerie"), a 12" EP recorded live to acetate with local musicians during an Australian tour (Mount Eerie Dances with Wolves), and a live triple album released by Burnt Toast Vinyl in late 2004 (Live in Copenhagen). Elverum returned to his hometown of Anacortes after spending several years living in Olympia, WA whilst recording for K Records, and established his own label and imprint, P.W. Elverum & Sun, Ltd. The first official Mount Eerie studio album in Phil's eyes was "No Flashlight" Songs of the Fulfilled Night, released in August 2005. The original pressing featured an extremely large fold-out sleeve with extensive footnotes and explanations. Following pressings of the album feature more simple packaging with the original liner notes and poster absent.
Elverum has continued to tour and record prolifically in recent years, to considerable critical acclaim. Noteworthy releases have included Mount Eerie pts. 6 & 7 (a hardcover coffee-table book of Elverum's photography, packaged with a 10" record), Lost Wisdom (recorded with Julie Doiron and Frederick Squire), and Wind's Poem (a black metal-influenced double-album, recorded with Nicholas Krgovich). In 2012, Elverum released two albums, Clear Moon and Ocean Roar, and was chosen to perform at Jeff Mangum's All Tomorrow's Parties festival in Minehead, England. A new Mount Eerie double-album entitled Sauna was released on February 2, 2015.
In January 2017, the song "Real Death" was released from the forthcoming album A Crow Looked at Me. A second single, "Ravens," was released on February 15. On March 24, A Crow Looked at Me was released and has so far received high critical praise.