Psychedelic Get Down Party

The 13th Floor Elevators certainly played and recorded all their music on acid and their 1966 album had the word "Psychedelic" in its title. They were preforming in Austin well before the album was released. Not to be pedantic, but the word was coined by Humphrey Osmond in 1957, so the claim is credible.

Many authorities on the subject (e.g., Patrick Lundborg in 2010. The Acid Archives (2nd ed.). Lysergia. p. 394) assert that the Elevators are the "first" psychedelic rock group. Powell St. John (later of "Mother Earth") and a member of 13th Floor discusses "the life and times" here--> http://www.musicliferadio.com/2010/10/024-sultan-of-psychedelia/.

Regardless, Roky Erikson was a very early casualty (and a sad one, too) of the "War On Drugs".

I'll amend my comment. According to ABKCO, "The Deep" released, "Psychedelic Moods" 12/31/1965 and - presumably - therefore it's the first to use the word in the album title. However, the Elevators formed in 1965 and were playing the Austin scene before the first album release date. So, I guess it's a toss up...but I'll go for the 13th Floor myself on this one. At least they recorded more than one album!

OP,
ABKCO Music & Records, Inc. (ABKCO acronym of Allen & Betty Klein and COmpany) founded in 1961.

"The Deep" released "Psychedelic Moods" (24 tracks, 58 minuntes, 58 seconds) on the ABKCO label on December 31, 1965.

Album release information is on Tidal and elsewhere.