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. Mr. Happy was premiered at a Paisley Park Studios party on 24 August 1996 (a.m.).
The track contains two lines sampled from songs by Ice Cube previously used on the Big City Remix of The Good Life: "bought a house next to Prince", taken from the "Westside Remix" of What Can I Do? (also called What Can I Do? (Remix)) released on a single in 1994 and "Microphone check" from When I Get To Heaven (Remix). Both tracks were included on Cube’s 1994 compilation Bootleg & B-Sides.