The track, which originally appeared on "Van Halen II", was initially inspired by Van Halen jamming on an acoustic guitar during a New Year's Eve party at Ted Templeman's house; the producer had Eddie record the tune for the band's second album.

"Spanish Fly" followed the groundbreaking instrumental, "Eruption", from Van Halen's 1978 self-titled debut, the tune which introduced Eddie to music fans around the world.