Would you believe Kenny Rogers was once a psychedelic rock artist? Before he was the Gambler and king of the rotisserie chicken, he was a member of The First Edition which recorded the psychedelic hit "Just Dropped In (To See What Condition My Condition Was In)" - a song blatantly about LSD. According to Kenny, this was one of Jimi Hendrix's favorite songs.
Perhaps less surprising is the fact that the Bee-Gees were once a psychedelic group as well. Their album Bee-Gees 1st mimics The Magical Mystery Tour not in quality but in its unbridled psychedelia.
Of course, that style of music was selling records at the time, so naturally artists were inclined to adopt the psychedelic style to become successful. Thus, a lot of artists like Ted Nugent, Lemmy (Motorhead) and Todd Rundgren began their careers kickin' out the space jams.
Angus Young of AC/DC was never in a psychedelic band himself, but his older brother, Alex, was in a group called Grapefruit. This video was brought to my attention by the Funky Junk Trunk (who's been inspiring me a lot lately) and brings a smile to my face every time I watch it.