After brief trial runs with Larry Wallis (February - October 1972) and Bernie Marsden (he toured with UFO in Europe and recorded a pair of demos, "Oh My" and "Sixteen") the band recruited Michael Schenker from Scorpions in June 1973. Schenker was only 18 at the time but was already a well-respected guitarist. On a new label, Chrysalis Records, the revamped UFO recorded a non-LP single in 1973, "Give Her The Gun" and "Sweet Little Thing" with producer Derek Lawrence. In 1974, under producer Leo Lyons (formerly of Ten Years After), UFO recorded Phenomenon, which highlighted the band's harder-edged guitar sound. Phenomenon contains many fan favorites such as "Doctor Doctor" (later a minor hit single as a live track) and "Rock Bottom" (which was extended live to provide a showcase for Schenker). By the time of the Phenomenon tour, ex-Skid Row guitarist Paul Chapman joined the group, but he left in January 1975 to form Lone Star.  Two later albums, Force It (July 1975) and No Heavy Petting (May 1976) (the last was recorded with a regular keyboardist, Danny Peyronel as well as harmony vocalist and also songwriter), and extensive touring brought UFO increased visibility with American audiences and increased their following in the UK. The song "Belladonna" from No Heavy Petting was very popular in the USSR after the cover version of Alexander Barykin.  In July 1976, the band recruited keyboardist and rhythm guitarist Paul Raymond from Savoy Brown to make 1977's Lights Out. This album was the pinnacle of UFO's studio career containing songs such as "Too Hot to Handle," "Lights Out," and the 7-minute opus "Love to Love." With Lights Out, the band received substantial critical acclaim. With their new-found success, the band went back into the studio to record Obsession in 1978. Later that year, the band went on tour in the USA and recorded a live album, Strangers In The Night, which was released in January 1979. Strangers was a critical and commercial success, reaching Number 8 in the UK Albums Chart in February 1979.

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