Panic at the Disco released their debut album A Fever You Can't Sweat Out on September 27, 2005, making a fan base through PureVolume and MySpace, though achieving little commercial recognition. After a consistent presence in PureVolume's top 10 signed artists, and reaching number one in MySpace's indie charts, Panic at the Disco were featured on MTV's Total Request Live on January 17, 2006, where they premiered their music video for "I Write Sins Not Tragedies." Featuring Lucent Dossier Vaudeville Cirque and a circus wedding theme, the video débuted at #10 on the TRL countdown, later winning the Video of the Year award at the 2006 MTV Video Music Awards. The single itself, released April 27, 2006 got to #7 in the US charts.
The band was originally third-billed for the Truckstops & Statelines Winter Tour in early 2006, which was headlined by The Academy Is... and included Acceptance as direct support and Hellogoodbye on the line-up. Due to their increase in popularity before and during the tour, the band ended up getting pushed above Acceptance to second-billed every night playing right before the headliner and "A Fever You Can't Sweat Out" outsold The Academy Is...'s debut album, "Almost Here" during the tour.
Their second single, "But It's Better If You Do", was released in the UK on May 1st, 2006 where it debuted, and peaked, at #23. The accompanying music video, released the previous month, portrays the band playing in a speakeasy in 1930's America, which, according to Urie, shows "the dark and secluded style of Panic."
The band officially announced the departure of their bassist, Brent Wilson, with a message on the band's website on May 17, 2006. Wilson has since claimed that the decision to leave was not his, and that he was fired without warning for monetary reasons, though the rest of the band deny this. Wilson is now demanding a cut in royalties, and has threatened he will take his former band to court if need be.
Just days after Wilson's departure, the band embarked on their first headlining tour through Europe, with long-time friend, Jon Walker, filling in for the summer tour as a temporary bassist while a permanent replacement was sought. All of the dates were sold out, with some, notably Manchester, selling out in a matter of hours. Upon their return, the band embarked on a two-month North American headlining tour with supporting acts The Hush Sound, OK Go, The Dresden Dolls, and Lucent Dossier Vaudeville Cirque, still retaining Walker as a temporary bassist. On July 3 of that year, the band's MySpace profile was edited to list Walker as bassist/vocals, and he became a permanent member of Panic at the Disco.
The success of their first two singles helped catapult their debut album to the top of the Billboard Independent chart and to #13 on the Billboard 200 in July 2006. The video for "I Write Sins Not Tragedies" has been streamed from YouTube almost 9 million times.
Towards the end of July 2006 Panic at the Disco released their third music video, "Lying Is the Most Fun a Girl Can Have Without Taking Her Clothes Off." The video features people with fish tank helmets walking the streets of what appears to be a studio back lot. The video only shows the band in one shot, reportedly because they felt that their looks were distracting from their music.
In early August 2006, A Fever You Can't Sweat Out went Platinum, having sold over one million albums.
During Panic's opening song on August 25, 2006 at the Carling Weekend: Reading Festival, an unknown audience member threw a bottle at the stage, which struck and temporarily knocked out Brendon Urie, forcing the band to stop playing. After some minutes, he got back up and shouted to the crowd, "You can't take me out! Let's see how well you guys do with my left side", and continued with the same song. In a phone interview Ryan Ross stated that "We [Panic!] were kinda expecting that [The bottling] going into the Reading, because we heard that that's kinda a tradition they have over there" and then continued by saying that "We walked on and we were kinda expecting that to keep our heads up the whole time, and unfortunately Brendon, he was catching bottles coming towards me and Jon and then he was dodging them himself, and kinda just didn't see one coming that I saw and it got him pretty good, and I dunno that's the only time anything like that's ever happened so hopefully we won't have to worry about anything like that too much."
The band embarked on a world tour in the later part of 2006. It included dates in Australia, New Zealand, and continental Europe. On November 7, 2006, they kicked off their first-ever arena tour with Bloc Party (who shortly dropped out because of drummer Matt Tong suffering a collapsed lung) and Jack's Mannequin. The Plain White T's were added to the next few weeks of The Nothing Rhymes With Circus Tour. They opened up the shows beginning in New York through November 26 in Iowa. After that, Cobra Starship were on the tour through December 9 in San Diego. The band appeared along with Fall Out Boy, Marilyn Manson, and other bands on the special edition soundtrack of Tim Burton's The Nightmare Before Christmas covering "This Is Halloween", which was re-released in 3D on October 20.
Their final single from A Fever You Can't Sweat Out, "Build God, Then We'll Talk", was released on March 5, 2007. The accompanying music video portrays the fallacy of relationships.
In May 2007 it was announced that a Smashing Pumpkins Tribute LP would be released, compiled by MySpace and Spin. The LP features Panic's cover of "Tonight, Tonight" and was included free in the June 26, 2007 issue of Spin.
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