Dip is the brainchild of the late film composer Jóhann Jóhannsson and drummer/composer Sigtryggur Baldursson.

It was originally a studio project started in 1997 when Baldursson, then living and working in the US, started visiting Iceland and collaborating with Jóhannsson on music originating grooves that Baldursson had been honing in Madisons Smart Studios. He was producing drum beats for loop-based programs when computers started to become a prominent production tool in studios in the mid to late '90s. Jóhannsson would then add his soundscapes, having been heavily influenced by 60’s Italian horror film scores, introducing subtle synth and keyboard work. Together they discovered emerging artists of Icelandic music at the time too and invited them to collaborate on vocals, including from and , among others.