Prelude Records was first founded in 1976 by Marvin Schlachter, renamed from Pye International Records, the US division of UK-based Pye Records which was launched in 1974. The name was derived from the music group Prelude which had recorded for Pye at the time. The Pye International PYE-12000 series was continued on Prelude, just with the prefix PRL.
Prelude was specialized in funk, dance and disco music with artists such as Musique, D-Train and the Nick Straker Band. After its closure in 1986, the back catalogue of Prelude was sold to Unidisc.