Supergrass had released "Caught by the Fuzz" and "Mansize Rooster" as singles on Backbeat Records, which sold out quickly and gained the interest of record producer Sam Williams, who then offered to record some demos of the band's other songs at Sawmills Studio. These acclaimed demos attracted major label interest, and after an A&R scrutinised gig at the Jericho Tavern in Oxford, they managed to secure a deal with Parlophone. Despite being a new and obscure band, critics welcomed Supergrass as a voice of youth, in part because they were so young, but also because their music was fresh, exuberant and fast-paced. Even before being signed to a major label "Caught by the Fuzz" had been put at number five on John Peel's Festive 50 of 1994. Although Supergrass had not been around long, they were named Band Of The Month in FHM after only two singles on Parlophone, and were supporting acts such as Blur, The Bluetones and Shed Seven.

The song is written around the true-life incident of lead singer Gaz Coombes' arrest and caution, for being caught in possession of cannabis at the age of fifteen. One of the members of the Seattle rock band Presidents of the United States of America said with regard to "Caught by the Fuzz": "This song is exactly what being a teenager sounds like."

The single just missed out on the Top 40 by reaching #43 in the UK Singles Chart, but failed to chart in the United States. The song was also notably included in John Peel's Festive 50 at number five at the time of its release in 1994. "Caught By the Fuzz" peaked at #95 on the Australian ARIA singles chart in August 1995.

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