Written by Chris Lowe and Neil Tennant, and influenced by Latin pop, the song was produced by Lewis A. Martinée, the Miami-based producer behind 1980s freestyle groups like Exposé. The song was also recorded at Martinée's studio in Miami, resulting in a considerably large number of studio musicians for a Pet Shop Boys song being featured on it.
The duo had achieved three number ones in 1987–1988 and "Domino Dancing" was expected to continue this success. But the public reception to the duo's new Latin sound proved disappointing. Tennant remembers: "...it entered the charts at number nine and I thought, 'that's that, then - it's all over'. I knew then that our imperial phase of number one hits was over."
The single missed the top ten on the Billboard Hot 100, peaking at #18, and was the duo's sixth and, to date, last Top 20 pop hit in the USA.The song did reach #5 on the Billboard Hot Dance Club Play chart, where the duo have seen more consistent success