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 early 1996 (the track was filed for copyright registration with Style on 3 March 1996), at Paisley Park Studios in Chanhassen, Minnesota.
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.).