The song was originally recorded and released by Bruce Dickinson for the soundtrack to A Nightmare on Elm Street 5: The Dream Child, but Steve Harris liked it so Iron Maiden rerecorded it. It is the only UK No. 1 single for the band to date, in spite of the fact that it received very little airplay on the BBC.

In 1989, while Iron Maiden were taking a break from touring, Zomba asked Dickinson to write a song for A Nightmare on Elm Street 5: The Dream Child. Teaming up with former Gillan (and future Iron Maiden) guitarist Janick Gers, Dickinson recorded the song, which he claims he wrote "in about three minutes," and the project was expanded into an album, Tattooed Millionaire. Upon hearing the completed track, Steve Harris decided that it would be "great for Maiden" and convinced Dickinson not to put it on his solo album.

The original version of the song, which won a Golden Raspberry Award for "Worst Original Song" in 1989, is, according to Dickinson, "substantially different to the Iron Maiden version," explaining that "the arrangement is identical, but mine's kind of... slinky. Maiden's just really goes for it." Dickinson's original version was included on disc 2 of The Best of Bruce Dickinson in 2001.

Bruce Dickinson said "We're going to release this as a single on Christmas Eve to scare the living daylights out of Cliff Richard". This led to the song competing with Cliff Richard's "Saviour's Day" for the 1990 Christmas No. 1, but due to not being officially released until the week after Christmas, went straight to No. 1 in the UK Singles Chart on 30 December 1990. This was in spite of a ban by the BBC, who refused to play the song on Radio 1 and only showed a 90-second live clip for Top of the Pops. The B-side features cover versions of "I'm a Mover" (originally by Free) and Led Zeppelin's "Communication Breakdown".

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