"All Time High" marked the return of regular James Bond theme composer John Barry after his absence from the For Your Eyes Only soundtrack. The lyrics were written by Tim Rice and recording and mixing of the track is credited to Stephen Short. The soundtrack for Octopussy was recorded over five days in early April 1983.

The movie's peculiar title negated the possibility of its theme song being based on its title (although Rice would later state: "I think it would have been more interesting if we had tried to write a song called 'Octopussy'"). Instead Barry suggested that Rice submit six potential song titles, and it was from these that "All Time High" was selected. Rice was provided with a copy of the script for Octopussy and also viewed the shooting of some scenes from the movie at Pinewood Studios, Rice visiting Pinewood in mid-December 1982. The completed lyrics for "All Time High" would include the line "We're two of a kind" which in the movie is spoken by the Octopussy (played by Maud Adams) to James Bond (Roger Moore), and the title evidently refers to the key aerial sequences featured in the movie.

Prior to Rita Coolidge being assigned the Octopussy theme a contender was Mari Wilson, a British singer whose retro-image evoked the mid-'60s when the Bond series originated, but Wilson's lack of a US-profile led to a negative decision. In January 1983 the producer of Octopussy: Cubby Broccoli, stated that he hoped to have current hitmaker Laura Branigan sing the movie's theme song, an artist choice which both Barry and Rice have stated would have pleased them. However, on March 29, 1983 Rita Coolidge was revealed at the singer, a surprising choice in that Coolidge's career peak had occurred some six years previously.

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