After performing for several years in the Austin, Texas blues scene, the band won a recording contract with Takoma/Chrysalis Records and later signed with Epic Records. In 2011, they signed with Severn Records.
Their first two albums were released in 1979 and 1980, with Kim Wilson's lead vocals and harmonica, Jimmie Vaughan as lead guitarist, and Keith Ferguson on bass guitar. Mike Buck was on drums for the first album but left the band and was replaced by Fran Christina on the second. Both albums initially sold through the small number printed (about 3000 units) and are now regarded as significant blues recordings. The Thunderbirds' blues style mixed Texas blues with the harmonica-laced swamp blues sounds of Slim Harpo and Lazy Lester—both of whom the Thunderbirds covered.The band's third album, Butt-Rockin', released in 1981, took the band closer to old rhythm and blues and added additional musicians playing piano and brass.