The Pulitzer Prize for Music is one of seven Pulitzer Prizes awarded annually in Letters, Drama, and Music. It was first given in 1943. Joseph Pulitzer arranged for a music scholarship to be awarded each year, and this was eventually converted into a prize: "For a distinguished musical composition of significant dimension by an American that has had its first performance in the United States during the year."

Because of the requirement that the composition have its world premiere during the year of its award, the winning work had rarely been recorded and sometimes had received only one performance. In 2004, the terms were modified to read: "For a distinguished musical composition by an American that has had its first performance or recording in the United States during the year."

In his will, dated April 16, 1904, Joseph Pulitzer established annual prizes for a number of creative accomplishments by living Americans, including prizes for journalism, novels, plays, histories and biographies, but did not establish a prize in music, choosing instead to inaugurate an annual scholarship for "the student of music in America whom the Advisory Board shall deem the most talented and deserving, in order that he may continue his studies with the advantage of European instruction." The Pulitzer Prize for Music was instituted in 1943 to recognize works of "music in its larger forms as composed by an American." The phrase "music in its larger forms" proved difficult to interpret for the advisory board and the prize's juries, resulting in controversies over the years. One critic of the award said, "The Prize Board could hardly have chosen more offensive words to communicate its message."

In 1965, the jury unanimously decided that no major work was worthy of the Pulitzer Prize. Instead, it recommended a special citation be given to Duke Ellington in recognition of his body of work, but the Pulitzer Board refused and therefore no award was given that year. Ellington responded: "Fate is being kind to me. Fate doesn't want me to be too famous too young." (He was then 67 years old.) Despite this joke, Nat Hentoff reported that when he spoke to Ellington about the subject, he was "angrier than I'd ever seen him before", and Ellington said, "I'm hardly surprised that my kind of music is still without, let us say, official honor at home. Most Americans still take it for granted that European-based music—classical music, if you will—is the only really respectable kind."

In 1996, the Pulitzer Board announced a change in the criteria for the music prize "so as to attract the best of a wider range of American music." African-American composer and trumpeter Wynton Marsalis became the first jazz artist to win the Pulitzer Prize in 1997. The legitimacy of his win was debated, as his entry, Blood on the Fields, should not have been eligible according to the Pulitzer guidelines: winning works are required to have had their first performance during the year of the award, but Marsalis's piece premiered on April 1, 1994, and Columbia Records released its recording in 1995. In an attempt to bypass that requirement, Marsalis's management had submitted a "revised version" of Blood on the Fields that had seven minor changes and a "premiere" at Yale University. When asked what would make a revised work eligible, the chairman of that year's music jury, Robert Ward, said: "Not a cut here and there...or a slight revision", but rather something that changed "the whole conception of the piece". After reading a list of the revisions to the piece, Ward acknowledged that they should not have made it eligible.

Ten women have received the Pulitzer Prize: Ellen Taaffe Zwilich in 1983; Shulamit Ran in 1991; Melinda Wagner in 1999; Jennifer Higdon in 2010; Caroline Shaw in 2013; Julia Wolfe in 2015; Du Yun in 2017; Ellen Reid in 2019; Tania León in 2021; and Rhiannon Giddens in 2023. In addition to being the first woman to receive the award, Zwilich was also the first woman to receive a Doctor of Musical Arts degree in composition at the Juilliard School of Music. Du is the first woman of color to receive the award. George Walker was the first African American composer to win the Prize, for his work Lilacs in 1996.

In 1992 the music jury, which that year consisted of George Perle, Roger Reynolds, and Harvey Sollberger, chose Ralph Shapey's Concerto Fantastique for the award. The Pulitzer Board rejected that decision and gave the prize to the jury's second choice, Wayne Peterson's The Face of the Night, the Heart of the Dark. The jury responded with a public statement that they had not been consulted in that decision and that the Board was not professionally qualified to make such a decision. The Board responded that the "Pulitzers are enhanced by having, in addition to the professional's point of view, the layman's or consumer's point of view" and did not rescind its decision.

In 2004, responding to criticism, Sig Gissler, the administrator of the Pulitzer Prizes at the Columbia University School of Journalism, announced that the board wanted to "broaden the prize a bit so that we can be more assured that we are getting the full range of the best of America's music". Board member Jay T. Harris said, "The prize should not be reserved essentially for music that comes out of the European classical tradition."