The Last Temptation of Krust

The production team's decision to write an episode about stand up comedy was influenced by comedy festivals. The writing staff initially had trouble getting Krusty's offensive bad jokes through network censors, but convinced them this was simply a way to emphasize his old and dated comedic material. The "Canyonero" sequence was modeled after Ford commercials and was given its own segment at the end of the episode because the production staff liked it so much. The episode was highlighted by USA Today in a review of The Simpsons ninth season and received positive reviews in The Washington Times, the Evening Herald, and in books on The Simpsons.

Krusty the Clown is persuaded by Bart Simpson to appear at a comedy festival organized by Jay Leno. Krusty's outdated and offensive material fails to impress the audience when compared with the trendier comedians also appearing. Discouraged by a negative review of his act, Krusty goes on a bender and passes out on Ned Flanders' lawn. While recovering in Bart's memorabilia covered room, Krusty realizes that he should have spent more time honing his act rather than selling out, and he enlists Bart and Leno's aid. However, his attempts at observational humor fall flat with the Simpson family. Krusty holds a press conference to announce his retirement and in short order launches into a bitter tirade against modern day comedians. The audience finds Krusty's rant hysterically funny and he subsequently announces his return to comedy. Krusty is inspired to return to doing low key events, where he structures a new image for himself as a stand up comedian who tells the truth, criticizes commercialism, and refuses to sell out to corporate America. He also changes his appearance, sporting a dark sweater and tying his hair in a ponytail. Observing his newfound popularity, two marketing executives try to persuade Krusty to endorse a new sport utility vehicle called the Canyonero. Although he tries to resist, he eventually succumbs to the lure of money. After promoting the Canyonero at a comedy performance in Moe's Tavern, he is booed off stage by the patrons. He finally admits to himself that comedy is not in his blood and selling out is. The episode ends with an extended advertisement for the Canyonero, as Krusty and Bart leave Moe Szyslak's tavern in Krusty's new SUV.

In the DVD commentary for The Simpsons'  ninth season, writer Donick Cary stated that the inspiration for the idea of an episode about stand up comedy came out of comedy festivals at the time. Executive producer Mike Scully said that the writers had difficulty getting Krusty's offensive bad jokes through the network censors. The stereotypical jokes were allowed because the writers convinced the network censors that viewers would understand it was simply emphasizing Krusty's dated comedic material. Mike B. Anderson stated that at least three different acts of material were written and animated for Krusty's comeback stand up appearance at Moe's Tavern. It was not until the editing process that the material used was decided upon. The episode was still being animated three weeks before it was due to air and the production process moved frantically shortly before completion. The Canyonero sequence was originally planned to be displayed during the closing credits. The production team liked the scene so much that they did not want it to be obscured by the credits and gave it its own segment at the end of the episode. Garofalo would return to guest star again as herself in the season 23 episode "The Ten Per Cent Solution". Krusty's "Krustylu Studios" is a spoof on the company Desilu studios, set up by Lucille Ball and her husband Desi Arnaz, where the series Star Trek was once filmed. During Krusty's "bender to end all benders" montage, he is seen drinking out of and vomiting into the Stanley Cup. The National Hockey League sent a letter regarding this scene. Additionally, Krusty's anti commercialism and anti corporate stances, along with styling his hair in a ponytail, is a reference to comedian George Carlin who styled his hair the same way later in his career and often had anti capitalist, anti consumerist and anti commercialist overtones in his performance.

The "Canyonero" song and visual sequence was modeled after Ford commercials. Two years later, Ford released the Super Duty based Ford Excursion, the largest and heaviest SUV ever until the electric GMC Hummer SUV and pickup. Chris Turner wrote positively of the Canyonero spoof piece in Planet Simpson: How a Cartoon Masterpiece Defined a Generation, calling it "a brilliant parody of an SUV ad". In an article in the journal Environmental Politics, Steve Vanderheiden commented that the Canyonero reflected an "anti SUV" stance by The Simpsons. Vanderheiden wrote: "Even the popular animated television series 'The Simpsons' joined the anti SUV fray in 1998, featuring a mammoth vehicle called the 'Canyonero' (marketed with the jingle: 'Twelve yards long, two lanes wide/Sixty five tons of American pride! '), which promised to help the family transcend its mundane station wagon existence but instead brought only misery." In an article in the San Francisco Chronicle about SUV owners, Vicki Haddock wrote "SUV owners have become something of a punch line, succinctly captured in a "Simpsons" parody touting the apocryphal Canyonero". In a 2006 article, Seth Jayson of The Motley Fool compared the wording in a Ford advertisement myFord Owner Magazine to this episode, writing: "the unholiest of unholies is the writing, which is so thick with absurd adspeak, you'd think it was written by the crew at The Onion or The Simpsons – especially that episode where Krusty starts shilling for the Canyonero." In a 2004 article in the Chicago Tribune, Jim Mateja noted that people have pointed out a similarity between the GMC Canyon and the Canyonero. When contacted, GMC responded that the GMC is a pickup truck, while the Canyonero is a parody of an SUV.

In its original broadcast, "The Last Temptation of Krust" finished 21st in ratings for the week of February 16–23, 1998, with a Nielsen rating of 9.7, equivalent to approximately 9.5 million viewing households. It was the fourth highest rated show on the Fox network that week, following The X Files, The World's Scariest Police Chases, and King of the Hill. In 2006, USA Today highlighted the episode in a review of The Simpsons ninth season. In his review of the season nine DVD, Joseph Szadkowski of The Washington Times noted: "Among the 22 minute gems found in the set, I most enjoyed [Krusty's] work with Jay Leno." Mark Evans of the Evening Herald wrote: "'The Last Temptation of Krust' is a winner for its title alone as Krusty the clown becomes a satiric 'alternative' comedian but then sells out by advertising the Canyonero SUV road hazard." Alan Sepinwall wrote positively of the episode in The Star Ledger, citing the Canyonero sequence as "the real reason to watch" the episode and that "It's an oversize vehicle that will create oversized laughs." In the book I Can't Believe It's a Bigger and Better Updated Unofficial Simpsons Guide, Warren Martyn and Adrian Wood characterized the episode as "a good twist on the never ending Krusty story" and suggested that while "Jay Leno turns in a nice cameo [ ] the show is stolen by the advert for the Canyonero". He also appreciated Krusty's poke at Leno's use of news headlines on The Tonight Show with Jay Leno and said that he could not figure out whether parts of the episode were making fun of him or complimenting him.