In 1990, following a 20-year hiatus, the Velvet Underground reformed for a Cartier benefit in France. Reed released Magic and Loss in 1992, an album about mortality, inspired by the death of two close friends from cancer. In 1993, the Velvet Underground again reunited and toured throughout Europe, though plans for a North American tour were cancelled following another falling out between Reed and Cale. In 1994, Reed appeared in A Celebration: The Music of Pete Townshend and The Who, also known as Daltrey Sings Townshend. This was a two-night concert at Carnegie Hall produced by Roger Daltrey of English rock band The Who in celebration of his fiftieth birthday. In 1994, a CD and a VHS video were issued, and in 1998 a DVD was released. Reed performed a radically rearranged version of "Now And Then" from Psychoderelict.

In 1996, the Velvet Underground were inducted into the Rock and Roll Hall of Fame. At the induction ceremony, Reed performed a song entitled "Last Night I Said Goodbye to My Friend" alongside former bandmates John Cale and Maureen Tucker, in dedication to VU guitarist Sterling Morrison, who had died the previous August. Reed has since been nominated for the Rock Hall as a solo artist twice, in 2000 and 2001, but has not been inducted.

In 1997, over 30 artists covered "Perfect Day" for the BBC's "Children in Need" appeal. 1996's Set the Twilight Reeling received a lukewarm reception, but 2000's Ecstasy - including several tracks originally written for the "Time Rocker" piece - drew praise from most critics, including Robert Christgau. In 1996, Lou Reed contributed songs and music to Time Rocker, an avant-garde theatrical interpretation of H.G. Wells's The Time Machine staged by theater director Robert Wilson. The piece premiered in the Thalia Theater in Hamburg, Germany, and was later also shown at The Brooklyn Academy of Music in New York.

Since the late 1990s, Reed was romantically linked to the musician, multi-media and performance artist Laurie Anderson, and the two have collaborated on a number of recordings together. Anderson contributed to "Call On Me" from Reed's project The Raven, to the tracks "Rouge" and "Rock Minuet" from Reed's Ecstasy, and to "Hang On To Your Emotions" from Reed's Set the Twilight Reeling. Reed contributed to "In Our Sleep" from Anderson's Bright Red and to "One Beautiful Evening" from Anderson's Life on a String. They were married on April 12, 2008.

Source: Lou Reed - Wikipedia, the free encyclopedia