Schoolyard, titled The Schoolyard on some work orders, was recorded on 2 July 1990 at Olympic Studios, London, England (on the same day as Daddy Pop and Walk Don’t Walk). It was included as the fifth track on a November 1990 configuration of Diamonds And Pearls, and as the third track on a December 1990 configuration, before being discarded on later configurations, once further songs were recorded for the album.
The track was remixed and likely extended on 25 November 1990. Eric Leeds added a sax part to it in December 1992.
The song includes a narrative about a 16-year-old boy seducing a 14-year-old girl. The lyrics mention Squib Cakes by Tower Of Power (written by Chester Thompson, from their 1974 album Back To Oakland), which was sampled on both Release It (recorded prior to this track) and Sleep Around (recorded later). Although no official artist credit has been given to the track, its inclusion on (what became) Diamonds And Pearls would have resulted in this track being credited to Prince and the New Power Generation, which is how it is listed here. The track remains unreleased.
Schoolyard was released in October 2023 as the first track of Vault Tracks part 1, one of the discs with previously unreleased tracks included with the Diamonds And Pearls Super Deluxe Edition.