I really like the work of the 1980's Los Angeles group Opal.
Opal was the creation of David Roback and Kendra Smith. It's rooted in 1960's psychedelic sounds - you can hear the influence of The Doors and Neil Young. Opal goes to weird places like what you'd find at the end of a Beatles song circa 1967 / 68. Their two releases Early Recordings and Happy Nightmare Baby are chock full of great tunes.
Readers might be more familiar with the band that came after Opal disbanded. Mazzy Star was a collaboration of Roback with vocalist Hope Sandoval.