Green was eventually diagnosed with schizophrenia and spent time in psychiatric hospitals undergoing electroconvulsive therapy during the mid-1970s.
Many sources attest to his lethargic, trancelike state during this period.
In 1977, Green was arrested for threatening his accountant David Simmons with a shotgun.
The exact circumstances are the subject of much speculation, the most famous being that Green wanted Simmons to stop sending money to him.
In the 2011 BBC documentary Peter Green: Man of the World, Green stated that at the time he had just returned from Canada needing money and that, during a telephone conversation with his accounts manager, he alluded to the fact that he had brought back a gun from his travels.
His accounts manager promptly called the police, who surrounded Green's house.

In 1979, Green began to re-emerge professionally.
With the help of his brother Michael, he was signed to Peter Vernon-Kell's PVK label, and produced a string of solo albums starting with 1979's In the Skies.
He also made an uncredited appearance on Fleetwood Mac's double album Tusk, on the song "Brown Eyes", released the same year.

In 1981, Green contributed to "Rattlesnake Shake" and "Super Brains" on Mick Fleetwood's solo album The Visitor.
He recorded various sessions with a number of other musicians notably the Katmandu album A Case for the Blues with Ray Dorset of Mungo Jerry, Vincent Crane from The Crazy World of Arthur Brown and Len Surtees of The Nashville Teens.
Despite attempts by Gibson Guitar Corporation to start talks about producing a "Peter Green signature Les Paul" guitar, Green's instrument of choice at this time was a  Gibson Howard Roberts Fusion guitar.
 In 1986 Peter and his brother Micky contributed to the album A Touch of Sunburn by Lawrie 'The Raven' Gaines (under the group name 'The Enemy Within').
This album has been reissued many times under such titles as Post Modern Blues and Peter Green and Mick Green – Two Greens Make a Blues, often crediting Pirates guitarist Mick Green.

In 1988 Green was quoted as saying: "I'm at present recuperating from treatment for taking drugs.
It was drugs that influenced me a lot.
I took more than I intended to.
I took LSD eight or nine times.
The effect of that stuff lasts so long ... I wanted to give away all my money ... I went kind of holy – no, not holy, religious.
I thought I could do it, I thought I was all right on drugs.
My failing!"

Along with the other members of Fleetwood Mac, Green was inducted into the Rock and Roll Hall of Fame in 1998.
In the early 2000s there were rumours of a reunion of the early line-up of Fleetwood Mac, involving Green and Jeremy Spencer.
The two guitarists and vocalists were apparently unconvinced of the merits of such a project, but in April 2006, during a question-and-answer session on the Penguin Fleetwood Mac fan website, bassist John McVie said of the reunion idea:
If we could get Peter and Jeremy to do it, I'd probably, maybe, do it.
I know Mick would do it in a flash.
Unfortunately, I don't think there's much chance of Danny doing it.
Bless his heart.

In May 2009, Green was the subject of the BBC Four documentary Peter Green: Man of the World produced by Henry Hadaway.
On 25 February 2020 an all-star tribute concert was performed at the London Palladium, billed as "Mick Fleetwood and Friends Tribute to Peter Green".
The Guitar World review said that Green was not in attendance and possibly unaware of the event.
Green was eventually diagnosed with schizophrenia and spent time in psychiatric hospitals undergoing electroconvulsive therapy during the mid-1970s. Many sources attest to his lethargic, trancelike state during this period. In 1977, Green was arrested for threatening his accountant David Simmons with a shotgun. The exact circumstances are the subject of much speculation, the most famous being that Green wanted Simmons to stop sending money to him. In the 2011 BBC documentary Peter Green: Man of the World, Green stated that at the time he had just returned from Canada needing money and that, during a telephone conversation with his accounts manager, he alluded to the fact that he had brought back a gun from his travels. His accounts manager promptly called the police, who surrounded Green's house.
In 1979, Green began to re-emerge professionally. With the help of his brother Michael, he was signed to Peter Vernon-Kell's PVK label, and produced a string of solo albums starting with 1979's In the Skies. He also made an uncredited appearance on Fleetwood Mac's double album Tusk, on the song "Brown Eyes", released the same year.
In 1981, Green contributed to "Rattlesnake Shake" and "Super Brains" on Mick Fleetwood's solo album The Visitor. He recorded various sessions with a number of other musicians notably the Katmandu album A Case for the Blues with Ray Dorset of Mungo Jerry, Vincent Crane from The Crazy World of Arthur Brown and Len Surtees of The Nashville Teens. Despite attempts by Gibson Guitar Corporation to start talks about producing a "Peter Green signature Les Paul" guitar, Green's instrument of choice at this time was a  Gibson Howard Roberts Fusion guitar.  In 1986 Peter and his brother Micky contributed to the album A Touch of Sunburn by Lawrie 'The Raven' Gaines (under the group name 'The Enemy Within'). This album has been reissued many times under such titles as Post Modern Blues and Peter Green and Mick Green – Two Greens Make a Blues, often crediting Pirates guitarist Mick Green.
In 1988 Green was quoted as saying: "I'm at present recuperating from treatment for taking drugs. It was drugs that influenced me a lot. I took more than I intended to. I took LSD eight or nine times. The effect of that stuff lasts so long ... I wanted to give away all my money ... I went kind of holy – no, not holy, religious. I thought I could do it, I thought I was all right on drugs. My failing!"
Along with the other members of Fleetwood Mac, Green was inducted into the Rock and Roll Hall of Fame in 1998. In the early 2000s there were rumours of a reunion of the early line-up of Fleetwood Mac, involving Green and Jeremy Spencer. The two guitarists and vocalists were apparently unconvinced of the merits of such a project, but in April 2006, during a question-and-answer session on the Penguin Fleetwood Mac fan website, bassist John McVie said of the reunion idea:
If we could get Peter and Jeremy to do it, I'd probably, maybe, do it. I know Mick would do it in a flash. Unfortunately, I don't think there's much chance of Danny doing it. Bless his heart.
In May 2009, Green was the subject of the BBC Four documentary Peter Green: Man of the World produced by Henry Hadaway. On 25 February 2020 an all-star tribute concert was performed at the London Palladium, billed as "Mick Fleetwood and Friends Tribute to Peter Green". The Guitar World review said that Green was not in attendance and possibly unaware of the event.
Peter Green (musician)