In the Rolling Stone Press book, The New Rolling Stone Encyclopedia of Rock & Roll, the Traveling Wilburys are described as "the ultimate supergroup". It was the brainchild of George Harrison who wanted to do an album "with me and some of my mates". He mentioned his idea to Lynne who had just co-produced Harrison's latest album, Cloud Nine. During this production, errors were created by faulty equipment. Harrison quipped, "We'll bury 'em in the mix," and these faults became known as Wilburys.

Bob Dylan, Roy Orbison and Tom Petty were all invited to join Harrison's and Lynne's group and signed on. They produced an album, Traveling Wilburys Vol. 1 and it was released in October 1988. The album generated two successful singles; Handle With Care and End of the Line.

Vol. 1 was a critical and commercial success, and revitalised the careers of Dylan, Orbison and Petty. It won many accolades, including a Grammy for Best Rock Performance by a Duo or Group.

Their second and final album released in 1990, intentionally misnamed Traveling Wilburys Vol. 3, was dedicated to Roy Orbison, who had died of a heart attack shortly after Vol. 1's release. It did not achieve the same critical acclaim of their first, but was still well received.

Harrison's death in November 2001, ended the potential for any future collaborations.

More Info: en.wikipedia.org