Rockwell is the son of Motown CEO Berry Gordy Jr. At the time of the recording Rockwell was estranged from his father and living with Ray Singleton, his father's ex-wife. Singleton served as executive producer on the project and would occasionally play some demo tracks to Berry Gordy. The elder Gordy was less than enthusiastic about Rockwell's music until he heard the single with a familiar voice featured prominently on background vocals.
Produced by Curtis Anthony Nolen, the song featured backing vocals by ex-Motown artist Michael Jackson and Alan Murray on percussion. "Somebody's Watching Me" peaked at number two on the Billboard Hot 100 in 1984, and reached the top of the Billboard R&B singles chart, as well as reaching number six on the UK Singles Chart.