This was the first song Nile Rodgers and Bernard Edwards wrote as Chic, pre-dating even their debut hit "Dance, Dance, Dance (Yowsah, Yowsah, Yowsah)." Rogers recalled to NME in 2013: "The Chic concept was a cross between a black version of Roxy Music and the anonymity of Kiss. I wrote 'Everybody Dance' one afternoon. I thought it was too jazzy but I loved it. I played it for Bernard – he loved it too but he said, 'My man, what does it do do do do mean?' I said, 'The same as la la la la.' He said, 'Well, why don't we go, "Everybody dance la la la la?'" I said, 'Because the la la la la era is over.'"
Nile Rodgers told NME that the first album he bought was Impressions by John Coltrane. He added: "I can't remember not knowing about jazz. It was almost like religion. I didn't like religion, but I loved music! But when I was able to buy my own records I bought this. The first Chic song I ever wrote, 'Everybody Dance,' is all based on McCoy Tyner's piano playing there."
This was usually played as the opening song of Chic's live sets because of its historical status and popularity.
Luther Vandross sung backing vocals for the track.
The British Pop group Steps' 2000 UK #1 hit "Stomp" borrowed the song's chord sequence and string swirls. The single's sleeve stated it was a tribute to Bernard Edwards and Nile Rodgers.
In 1993, the UK production duo Evolution scored a UK #19 hit with a house cover of the track. The extended version was appropriately titled 'Chic Inspirational Mix.'
