In 2010, Pretty Lights paired up with Billy Moulton and played at the 2010 Coachella Valley Music and Arts Festival, the Ultra Music Festival in Miami, the 2010 Marchone Music Productions Illumination Show in Nashville, the 2010 Evolve Festival in Nova Scotia, Movement 2010 (the Detroit Electronic Music Festival), the 2010 Starscape Festival, Camp Bisco 9, Nocturnal Festival at Apache Pass, Texas, the 2010 Electric Zoo at Randall's Island in New York City, New York, the North Coast Music Festival in Chicago, Illinois, and the Outsidelands Festival in San Francisco, California. More recently, they headlined the Snow Ball in Avon Colorado along with Bassnectar and the Flaming Lips. In January 2011, Pretty Lights played in Calgary, Alberta at the Snowblower one-day festival in conjunction with the High Performance Rodeo. In June 2011 Pretty Lights had a late-night set at Bonnaroo, where he debuted the hit song "I know the Truth." Smith also debuted his state of the art light show in early 2011 involving LED towers made to look like a cityscape. Most recently in July 2011, he headlined at the Electric Forest in Rothbury, Michigan, at Camp Bisco's 10th anniversary in Mariaville, NY, and at All Good 2011 in Masontown, WV. At All Good 2011 Pretty Lights released what Smith described onstage as a special "one in a lifetime" track, a remix of John Denver's "Take me Home Country Roads".
In 2010, Smith replaced Eberhard with Adam Deitch as drummer, debuting at Red Rocks on August 7, 2010 On January 25, 2011, Smith released two albums on his newly formed record label, Pretty Lights Music. The record label offers free downloads for any of Pretty Lights' albums plus Michal Menert, Paper Diamond and Break Science, all currently on Pretty Lights Music. Gramatik is the latest addition to the Pretty Lights Music record label with his first album, Beatz & Pieces Vol. 1, which was released on July 12, 2011. A donation option is available, much as In Rainbows by Radiohead was released for its first month. Pretty Lights continues to distribute music for free, and frequently appears at festivals across the world.