MGMT's Andrew VanWyngarden's denied to Spin Magazine that this instrumental track is a tribute to the duo's fellow New Yorker, the similar monikered Lady Gaga. He said: "It's just an instrumental track, but it's very nightmare-ish sounding! Actually, it's really kind of messed up sounding, and we thought it would be funny to call it 'Lady Dada's Nightmare.'"
The song was recorded using a vintage keyboard. MGMT's Ben Goldwasser told The Times April 3, 2010 that it was "a kind of educational tool, full of little pegs - it looks like a game of battleships. I stayed up all night adding part after part, not knowing what it would become, pretty much just laughing the whole time."