Scarlet Pussy was released as the b-side of I Wish U Heaven, the third and final single from Prince's tenth album Lovesexy, although the song was credited to Camille with no other credits. It was not mentioned on the sleeve of the CD single, although included in its full-length version. In 1993, the song was included as the twelfth track on The B-Sides compilation (included as the third and final disc on The Hits / The B-Sides), giving the writing credit also to Camille.
While specific recording dates are not known, basic tracking took place in January 1988 at Paisley Park Studios in Chanhassen, Minnesota. The song was initially planned for Sheila E., and it was included as the tenth and final track on a 1989 configuration of her planned fourth album on Paisley Park Records, which was ultimately abandoned. It is not known if and how the version intended for the album was different than the released version which features Sheila E.'s voice throughout. Prince's vocals had their pitch lowered considerably, whereas previous tracks intended to be released with Camille credited for vocals had his pitch raised. The style and lyrics are reminiscent of George Clinton's Parliament and Funkadelic groups. The line "Pussycat, pussycat, wherefore art thou, puppy?" is a reference to the line "Romeo, Romeo, wherefore art thou, Romeo?" from William Shakespeare's 16th century play Romeo And Juliet.
Of note is that while Camille had previously been credited as a vocalist (on Housequake, U Got The Look, If I Was Your Girlfriend and Strange Relationship) this is the only track to have been released with the artist credit Camille.