The following year, Keaggy released Freehand, the sequel to Acoustic Sketches. That same year Keaggy and longtime friend Randy Stonehill released Together Live! in both album and DVD format. In addition to including acoustic renditions of Keaggy and Stonehill's solo material, the project includes versions of their previous collaborations such as "Sunday's Child," "Who Will Save the Children?" and "That's the Way It Goes." Keaggy later guest performed on two songs of Rufus Tree's album Dying To Live.
2006 saw Keaggy release three additional instrumental albums: Jammed! was a one disc collection of songs featured previously on 1999's double album Premium Jams. The album also included a new rendering of "Ode to Joy" titled "Joyphil" and "Prehistrobie K-18," a previously unreleased song that Phil wrote and recorded as a teenager.

The acoustic instrumental album Roundabout, is another instrumental collection. The songs are either improvisation or other riffs played over loops that were recorded as part of the performance. Keaggy explains that the songs "began with me messing around at my soundchecks before the audience came in. I’d typically just come from taking a nap at a hotel, so my mind would be fresh, and I’d improvise loops that would be recorded by my soundman, Brian Persall. The loops have rhythm, lead, bass, and even percussion parts along with textures created using an EBow and placing plastic between the strings, which creates koto, banjo, and steel drum-type sounds. After I returned home, I imported all of the loops into Pro Tools and edited some sections, but no overdubs were added either after the initial recording or while in the studio. If a song was too long, I might edit some measures or repeated sections to make it a little less repetitious, or maybe move some bits around."

Phil Keaggy and guitarist Mike Pachelli released an acoustic instrumental project titled Two of Us. Also in 2006 Phil released a vocal album, Dream Again. It includes his son Ian, who co-wrote, sings and plays guitar on "Why" while his daughter Alicia sings a duet with her father on "Micah 6:8".
In 2006, Glass Harp reunited for a concert to celebrate the release of their first DVD, Circa 72. The DVD is the first official release of their 1972 PBS concert, and includes rare outtakes, home movie footage, and a commentary by the band. The year also saw the release of Happy Valentine's Day, a limited edition compilation of various love songs that Phil had recorded over the years as well as four new tracks.
In April 2006 Keaggy launched a free Podcast that is available through his website and iTunes. His last edition to date is from September 2008. The Podcasts feature music and commentary from Phil as well as music from some of his favorite artist
On October 29, 2007 Keaggy was inducted into the Gospel Music Hall of Fame by P.O.D. guitarist Jason Truby. He also released Acoustic Cafe, an album, that with the exception of "You Have My Heart," is a collection of covers ranging from Bob Dylan ("If Not For You," "Make You Feel My Love") to Cyndi Lauper ("Time After Time"). Many of the songs are duets, such as the Beatles' "In My Life" with Randy Stonehill and the Everly Brothers "All I Have to Do is Dream" with Jeremy Casella.
Later that year Keaggy released another acoustic instrumental album: The Song Within. Recorded using a McPherson acoustic guitar, the album revamped two Keaggy classics, with "What a Day" being transformed as "Water Day" and "Noah's Song" undergoing significant revision as "Noah's Shuffle."s.
2007 also marked the 30th anniversary of the landmark instrumental album, 1978's The Master and the Musician. The album was re-released with a bonus disc of outtakes, alternate versions and a recent interview. Keaggy also toured in support of the album's anniversary with a band that featured Glass Harp drummer John Sferra. The tour was chronicled on the subsequent live DVD: The Master & the Musician: 30 Years Later Tour. The next year Keaggy released the album Phantasmagorical: Master and Musician 2, the sequel to his 1978 masterpiece.
In 2008, Keaggy received the Gold Level Award as the "Best Spiritual / Worship Guitarist", as voted by readers of Acoustic Guitar Magazine, as well as appearing in the form of vocals and lead guitar on the Richard Cummins CD, Moments, which was nominated for "Best Pop/Contemporary Album of the Year" by the Canadian GMA's, Covenant award.
In June 2009, Keaggy and Randy Stonehill released a new studio album titled Mystery Highway.
In support of the album, the two musicians, along with guitarist Mike Pachelli and Glass Harp's Daniel Pecchio and John Sferra, played several concerts as "The Keaggy-Stonehill Band." The year also saw Keaggy contribute a soaring re-recorded version of "Passport" on the album CPR 3; a compilation of musicians from the Christian Progressive Rock (CPR) scene. The original version of "Passport" appeared on Keaggy's 1985 album Getting Closer. In October Keaggy released an instrumental album with pianist Jeff Johnson titled Frio Suite.
After meeting each other for the first time at the beginning of the year, the two musicians stayed in touch and created the album via email, with Johnson recording in Seattle while Keaggy recorded in Nashville.
December saw the release of the guitarist's third Christmas album, Welcome Inn. Featuring mostly original compositions such as the title track, Welcome Inn also includes the classic "God Rest Ye Merry Gentlemen" and an acoustic instrumental version of "In the Bleak Midwinter." The project also includes a new recording of "On that Day," a song co-written with Glass Harp drummer John Sferra for Keaggy's True Believer album in 1995.
On March 27, 2010, Glass Harp released their fourth live album: Glass Harp Live at the Beachland Ballroom 11.01.08. The ten-song project included material from Phil's solo career: "Sign Came through a Window" and "John the Revelator". The album is a recording of a benefit concert that Glass Harp headlined for Roots of American Music (www.rootsofamericanmusic.org), "an organization dedicated to the preservation, performance and education about traditional American music in our schools.
Also in late 2010, Keaggy did some session work with former Monkees member Micky Dolenz for Dolenz's solo album King for a Day. and he played guitar on the song "Rushing Wind" on Steve Clark's album Save The Day.
In the fall of 2010, The Phil Keaggy Trio released their first album, Inter-Dimensional Traveler. The project is a collaboration with keyboardist Jack Giering and Glass Harp drummer John Sferra and is described as being a wonderful blend of ambient jazz and funk, as well as being accredited with creating some of the tastiest jazz-funk licks to come out of Music City in a long, long time
In addition to recording and touring regularly, Keaggy is currently working on a record with former Living Sacrifice and P.O.D. guitarist Jason Truby.
In 2010 released the album Songs for Israel, which was attended by Bob Bennett, Phil Keaggy, Randy Stonehill and Buck Storm
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Bob Bennett, Phil Keaggy, Randy Stonehill and Buck Storm - 2010 |
Cosmic Rumpus, 2011, instrumental album. The album is the second project from "The Phil Keaggy Trio" but now credited as "The Jack Giering Trio", a group consisting of Keaggy, keyboardist Jack Giering and Glass Harp drummer John Sferra. In 2012 Phil released the album Live from Kegworth Studio.
In 2012 Phil released the album Live from Kegworth Studio and The Cover of Love. And also an instrumental album with Jeff Johnson called "WaterSky".
Infinity Unleashed, 2014, instrumental album. The album is the third project from "The Phil Keaggy Trio" but now credited as "John Sferra Trio", a group consisting of Keaggy, keyboardist Jack Giering and drummer John Sferra.
In November 2014 Classic Christian Rock zone presented "100 greatest Christian rock guitarist of all times" where Phil Keaggy listed first.
Phil Keaggy said
My many thanks to the voters first of all. There are so many great guitarists not just here in Nashville, but all over the world, who are not mentioned that should be up there in the high rankings. Polls and award shows make me nervous at times because truly gifted and hard working artists and guitarists often get overlooked. But I am humbled to even be on this list, and deeply appreciate your acknowledgement of my work over the years.
My fellow guitarists, please keep giving us the blessings of your musical gifts and never give up that gift and ability based upon opinion, popularity or polls.
Thanks and Blessings to you this special season, Phil Keaggy
Rumored comments by Jimi Hendrix and others
For decades, rumors have circulated which attribute comments regarding Phil Keaggy to a host of guitar icons. The most common rumored statements are attributed to Jimi Hendrix.
On March 19, 1970, an advertisement appeared in the Mansfield News Journal for an Iron Butterfly Concert at Ashland College the following evening, with Glass Harp listed as the opening band (erroneously printed as "The Grass Harp"). Underneath "The Grass Harp", a caption read "They Jam with Jimi Hendrix". Glass Harp had not in fact appeared anywhere with Jimi Hendrix (they were at that time still a local band to Northeast Ohio with little or no following nationally). It is unknown whether or not the promoter or Glass Harp's then-management directed that the statement be placed in the advertisement, but it is believed to be the first instance of any rumor regarding Hendrix in relation to Keaggy/Glass Harp
In a February 5, 1971 feature on Glass Harp in Cleveland's The Plain Dealer, the paper's rock music critic Jane Scott cited unnamed "record people" who told a story of Hendrix saying (in 1970) "That guy (Phil Keaggy) is the upcoming guitar player in the Midwest". With no sources ever named, and Jane Scott's death in 2011, the accuracy of the article is virtually impossible to verify.
In later years, rumors escalated into stories of Hendrix appearing on various television programs where he mentioned Phil Keaggy. A common variation says that during an episode of The Tonight Show, Johnny Carson asked Hendrix, "Who is the best guitarist in the world?" Hendrix is said to have answered, "Phil Keaggy." This has since been proven to be untrue, as evidenced by the available audio from Hendrix's (only) appearance on The Tonight Show on July 10, 1969 with guest host Flip Wilson. No mention of Keaggy or Glass Harp is made.

Another version of the story has Hendrix being asked, "Jimi, how does it feel to be the world's greatest guitar player?" To which Hendrix supposedly replied, "I don't know, you'll have to ask Phil Keaggy!" This account is sometimes attributed to a magazine interview in either Rolling Stone or Guitar Player. Occasionally the story has the setting for the question being a Hendrix appearance on the Dick Cavett Show, which is also untrue, as the clip from the show in question (in 1969) contains no mention of any other guitar players.
Other examples have the question being posed to Eric Clapton. A more recent variant has Eddie Van Halen being asked the question by either David Letterman or Barbara Walters.
Keaggy has long insisted that such stories are completely unfounded, noting that "it was impossible that Jimi Hendrix could ever have heard me...We...recorded our first album at Electric Lady Studios two weeks after his unfortunate death, so I just can’t imagine how he could’ve heard me. I think it’s just a rumor that someone’s kept alive, and it must be titillating enough to keep an interest there...So I don’t think it was said…and that’s it for that!"[34] Keaggy's recollection of the time frame during which Glass Harp's first album was recorded differs slightly from Glass Harp's officially-published history (which have the recording sessions ending on September 17, 1970, just hours before Hendrix's early-morning death in London, and not two weeks after).

In a July 2010 interview, Glass Harp bassist Daniel Pecchio commented on the ongoing Hendrix rumors saying "It’s a true urban legend. I still have people coming up to me claiming to have a Dick Cavett Show tape where Hendrix says that. We never pushed that rumor, you know, but it didn’t hurt us."