The song was first heard on television on episode 8 of the television show Fastlane. Both the song and the band received major attention when it became the title song on the hit television show The O.C. It was also previously in the soundtrack to the film Orange County and featured on the episode "Milhouse of Sand and Fog" of The Simpsons.

The song is about driving on U.S. Route 101, traveling to see a concert. The song became a top ten hit in Austria, Italy, the United Kingdom, and Republic of Ireland, reaching number 3 (in both Austria and Italy), number 9, and number 10 in the respective countries.

The estates of Al Jolson and his songwriting team are co-credited for "California", presumably because the title and chorus bear strong resemblances to his own "California, Here I Come". Some websites refer to the Phantom Planet song as a cover of the Jolson tune. Some parts of the song, particularly the piano solos at the beginning and end, are similar to the Jolson song, but still contain several differences in melody. It also bears some thematic and melodic resemblance to Joni Mitchell's "California" from her 1971 album, Blue.

The song was rerecorded in 2005 by Phantom Planet and re-released as "California 2005", a much mellower version of the song than the original. "California 2005" had its debut in the second episode of The O.C.'s third season, and is featured on Music from the OC: Mix 5.

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