Mr. Happy is the eleventh track on the first disc of Prince's 19th album Emancipation, the third album to be credited to .
While exact recording dates are not known, it is likely that basic tracking took place in March 1996, at Paisley Park Studios in Chanhassen, Minnesota (during the same set of sessions where Scrap D. recorded raps for I Rock, Therefore I Am and Da, Da, Da, and shouts for Style). It contains a repeated sample of "bought a house next to Prince", taken from What Can I Do? by Ice Cube (written by Leon Ware, Arthur Ross, Ice Cube, Mychal-Kaye Simmons and Victor Nathan Taylor, from his 1993 album Lethal Injection). The studio version was premiered at a Paisley Park Studios party on 24 August 1996 (a.m.).