A few months later, the band then headed to Sweet Silence Studios, in Copenhagen, to record the next King Diamond album from June until August 1990. It was the same studio where the Brats' album was mixed a decade earlier. The new album, titled "The Eye", have then been released on the following October 30th. The band matured a lot on this album with the songwriting, as well as King's voice too, which he considered as a better blend by being less piercing and irritating. On this album, there was choruses more than on the previous albums, even though this was a concept album as well. In the earlier days, it was so busy getting the story to go on that each chorus was more or less different. On "The Eye", the band made sure that they had lines that people would remember and sing along to, and that was the direction they wanted to have from then. Lyrically, the main parts of the stories told on "The Eye" are unfortunately true and the characters are real, at the opposite of any other album of King Diamond. The central figures in the story were all recorded in the history of the period, and the torture, witchhunts, sexual abuse and burnings at the stake that were all prevalant at the time were extensively documented. The only thing King threw in was the stuff about the necklace, all the rest took place and are absolutely authentic. This album saw more substantial contribution from other band members than only King and Andy in the area of song-writing. Another thing that was different with this album: the drums parts were recorded with a drum-machine, which didn't pleased much Snowy. Because of that, many believed that Snowy didn't really played on the album. In fact, he played, but he played on electronic pads: he had the sticks in his hands, playing, but it was not a normal drum kit.

Sadly, Roadrunner Records suddenly had a lack of interest in King Diamond and wasn't interested in promoting the album, that's why there was no video recorded in support of the album. There even was no tour following the release of "The Eye". In fact, only one show was performed; it was in Copenhagen on July 21st 1991. During that outdoor performance, the band played only "Eye Of The Witch" off the new album and was later joined onstage by some former Mercyful Fate members who performed a Mercyful Fate medley comprising of "Satan's Fall", "The Oath", "A Dangerous Meeting", "Nuns Have No Fun" and "Evil".

At the time, not only King Diamond had problems with his record company, but also with some of its members; Hal and Pete have both been kicked out of the band at about the same time. There were some problems with Hal's behaviour, and the band couldn't really trust him anymore. The same kind of thing happened to Pete, as he actually had a drinking problem. He wasn't necessarily drunk all the time, but when he was, he totally lost control of himself and got so mean that he was trying to hurt everyone and everything around him. It was a real problem for him, and in addition, he have been stealing some King Diamond equipment. Even though some of it may have been given back, that would never be resolved with lawyers and Pete might still got some of it. Later, he completely stopped drinking, and went helping other alcoolics with the same problem. Pete and Hal later started a new band together, Blakk Totem. The new bassist of King Diamond was an old friend of Snowy: Sharlee D'Angelo, and was the only bassist who auditionned for the spot. Sharlee, who started to play guitar ten years before, but not that much, switched to bass around 1988 after realizing bands always needed bassists at the opposite of guitarists. He should have done well because King thought he was perfect for the band, as he considered he was a musical genius, capable of playing everything and had the same musical tastes as the other guys. Snowy and Sharlee knew each other since they were about 15 years-old or so, when Snowy moved close to Sharlee's home, and they also once shared a punk band together with Michael Moon, who briefly played during the "Abigail" tour. Among the three guitarists who auditionned to replace Pete Blakk, the chosen one was Mike Wead, which have been highly recommended to King Diamond from Candlemass, a band which its members are very good friends of them. Mike already met King 3 years earlier on the "Abigail" tour while he was playing precisely in Candlemass at the time, which opened for King Diamond. Mike was also a very big fan since the first days of Mercyful Fate, just like Snowy and Sharlee also. Except for King, the four other guys of the band came from Sweden.

The following year, a live album titled "In Concert 1987 - Abigail" came out. This album, who was King Diamond's first official live album, has been recorded 4 years earlier as it featured selected live cuts from the European "Abigail" tour that occured in November and December 1987. The songs on the album actually comes from various places; some from the Hammersmith Odeon in London, some from Karlsruhe in Germany, as well as probably another German show too. These songs, originally recorded by their sound engineer for their own personal pleasure only, were mixed straight from a cassette deck on the night it was recorded, and they had absolutely no control over it. They couldn’t mix it because there was no mixing they could do; the audience had to stay exactly where they were, as well as for the vocals or any instrument, they couldn’t adjust any levels. The original mix has been preserved and no overdubs were added. Also, no mistakes or technical problems have been corrected as King wanted to keep it exactly like it was on stage during the actual shows, which gives the listener a pretty good idea of what the band sounds like, and especially concerning King's vocals as no harmonizers or pitch changes are used; everything is purely natural but an echo to work with. At one point, you can actually hear one of the guitarists breaking a string on his guitar, and there's a short perdiod where he's not playing.

It was on July 7th of that year that King found these live tapes by pure coincidence in a damp box marked "Toy Soldiers", in his cellar. Sitting right on top when King opened the box were four unmarked reels of tape. King played them to find out what was recorded on it, and found out they contained live performances recorded during the "Abigail" tour four years before. After the poor promotion for the release of "The Eye", it was obvious that King wasn't interested to stay with Roadrunner anymore, so he just wanted to put an end to the contract as soon as he could. However, it was part of the package of splitting up with Roadrunner to release a live album, but because it takes a lot to record a live album, and on the other hand there were those tapes that sounded raw, but still pretty good, there was no better choice than using those tapes to release it as a live album in order to fulfill the contract the earlier possible.

In 1992, King heard, by chance, some new music written by Hank Shermann and Michael Denner with their new band called Zoser Mez. Among others, there was a new version of the Mercyful Fate song "Desecration Of Souls". The tracks King have heard reminded him the good old Mercyful Fate days. There Hank cogitated the hypothesis of Mercyful Fate gathering again. They all stayed good friends since those years, so it was quite easy to get the guys together again; they all agreed to be part of the reunion, with the exception of drummer Kim Ruzz, which was not invited to the reunion because Michael Denner did not want to deal with him at all. So the band, who was still without a drummer, asked Zoser Mez' drummer Morten Nielsen to play on the album.

In the following month of July, it was official: Mercyful Fate was back. During the same month, the compilation "Return Of The Vampire" came out. This was actually a compilation of 9 old demos tracks recorded from early 1981 to early 1982. However, this album didn't contained only Mercyful Fate demos, as 2 of them where actually Danger Zone songs: "Leave My Soul Alone" and "M.D.A." Then in December, a second compilation, called "A Dangerous Meeting", came out. This one was documenting the best of both Mercyful Fate and King Diamond bands, even though only the King Diamond logo appears on the front cover. Although this compilation is an official one, it was put together by the label alone, without co-operating with any of the bands. King haven't got much good to say about it, as it was completely wrong for him to combine two bands so different on one album, and he didn't even want it to be released. Anyway, with the release of these two additional compilations, the Roadrunner contract was finally fulfilled, so Mercyful Fate signed a 5-album contract with Metal Blade Records.

Around that time, King also have recorded a demo with the King Diamond band for the upcoming album on his last weekend in Denmark, as he moved again from his native Denmark to the USA. This time, he moved to Dallas, Texas, where he still currently lives now. Texas is very laid-back and the attitude of the people is very similar to what King was used to in Denmark, at the opposite of Los Angeles, which was really not his cup of tea. There, sometimes people pick him out at the mall or something but King can easily deal with that. This move was mainly due for business purposes, as over 60% of their market was in the USA. It's always easier to communicate when you're closer, and also since his new house is a much bigger place than his previous home, King could then have a work room, with all the instruments and working equipement permanently set up, which wasn't the case before, as he had to set up everything each time that he wanted to play something because it was too small. By now, King doesn't have any intentions of moving back to Denmark; he feels so great in the Texas, he loves USA, this is his home now.

Still in 1992, while King prepared his move to USA, he had a little time off and began writing a novel about the "Them" and "Conspiracy" stories; in fact he had written the first two chapters. The story is so brutal and there was so much ideas in his head that never been put down before; he had all the names for that story and there are a lot more characters, like the fate of Grandpa is explained in details in those two chapters and all the names of the surrounding cities and everything. However, he never really had the time to finish it after that, but the few friends of King who had the chance to read it thought it was nice and that King had to finish this stuff. One day he would like to have the two or three months of peace with nothing else to do where he can continue it after that; that would be one way, to write a novel and have someone make sure it is all the way it should be. Then get a publisher and hope it creates enough stir for someone to base a screenplay on the book but it's just a matter of lack of time, because all this is really a big process.