Billy Freedom was replaced in 2002 by drummer Pete Howard, formerly of The Clash. The band signed with Rough Trade for their second album, 2002's Drink Me, featuring the single "Pretty Like Drugs." Rough Trade dropped them shortly after the release of Drink Me, and Wajih left the band at that time. The band signed with One Little Indian Records and released 2005's The Butcher and the Butterfly with KatieJane's sister Melanie Garside on bass, who left soon after and was replaced by Paul Jackson (not the fusion bassist of the same name).
Following The Butcher and the Butterfly the band recorded a live album at the Institute of Contemporary Arts titled Live at the ICA. Later Paul Jackson was replaced by Nomi Leonard. During this time Queenadreena independently released Ride a Cock Horse, an album composed of early demos.
In 2008, Queenadreena released the album Djin in Japan on Imperial Records, however, this was not actively promoted by the band which is now effectively on a hiatus. In a recent interview, Crispin Gray stated, "I wouldn't rule out some kind of reunion gigs in the future. I don't think there will be another record from Queenadreena though, I would be very surprised myself. I haven't heard from Katie in well over a year and I don't know where she is."
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