The song was first featured in the 1984 comedy The Woman in Red, along with two other songs by Wonder, and scored number one on the Billboard Hot 100 for three weeks from October 13 to 27, 1984. It also became his tenth number-one on the R&B chart, and his fourth on the adult contemporary chart; it spent three weeks atop both charts, and for the same weeks as on the Hot 100. The song also became Wonder's only solo UK number-one success, staying at the top for six weeks, in the process also becoming Motown Records' biggest-selling single in the UK, a distinction it still holds as of 2015. In addition, the song won both a Golden Globe and an Academy Award for Best Original Song. The song also received three nominations at the 27th Grammy Awards for Best Male Pop Vocal Performance, Song of the Year and Best Pop Instrumental Performance.

There was a dispute among Wonder, his former writing partner Lee Garrett, and Lloyd Chiate as to who actually wrote the song. Chiate claimed in a lawsuit that he and Garrett wrote the song years before its 1984 release; however a jury ultimately sided with Wonder.

^*sales figures based on certification alone
^{^}shipments figures based on certification alone

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