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The theme song to Psych, I Know, You Know, is performed by series creator Steve Franks and his band, the Friendly Indians. WIKI. You can download the MP3 from the link I am providing. These lyrics were all I could find off of someone's blog.
Psych was nominated for its first Emmy Award in 2010 in the category Outstanding Music Composition for a Series for the episode Mr. Yin Presents.... Adam Cohen and John Robert Wood were the composers for this episode.