Restless Records was started in El Segundo, California in 1986 by Enigma Records and primarily released alternative, metal and punk records. Restless also licensed and released records from Bar/None Records, Metal Blade Records and Mute Records. And Restless had a fully owned subsidiary Pink Dust Records.

In 1991 Restless and a number of Enigma Records titles were acquired by Bill Hein and Joe Regis and re-launched in Hollywood, California. In 1992, Restless acquired the Twin/Tone Records label and classic titles by such artists as The Replacements, Soul Asylum, The Jayhawks and Ween. This added to Restless' already substantial catalogue of titles by They Might Be Giants, The Cramps, The Dead Milkmen, Devo, The Flaming Lips, Stiff Little Fingers, T.S.O.L. among others.

In 1993 Restless co-founded Alternative Distribution Alliance (ADA) with Warner Brothers Music Group (WMG) to handle its distribution and certain titles released by Warner Bros., Elektra Records, Atlantic Records, their affiliates and Sub Pop Records. Sub Pop subsequently became a partner in the venture. Within 10 years, ADA went on to become the largest distributor of independent music in America.

In 1997 Restless was acquired by Arnon Milchan's New Regency Productions, one of the entertainment industry's largest independent film production companies. Restless remained a subsidiary of New Regency until 2001, during which time, Restless released many of New Regency's soundtracks including L.A. Confidential, Fight Club and Malcolm In The Middle (the title song to which earned They Might Be Giants a Grammy in 2001).

After New Regency sold its interest back to Hein and Regis in 2001 Restless entered into a distribution deal with Ryko Distribution which led to a sale to Ryko Corp. Ryko was later acquired by Warner Music Group in 2006.