This song won the 1989 Dove award for Song of the Year, a year after Watercolour Ponies earned Watson the 1988 Album of the Year award.
Watson explained the song: "It put words to the feelings I was having about Jesus. Knowing him most of my life as Savior, I was getting to know him as friend."
Watson enlisted Claire Cloninger to help after he found himself struggling with the lyrics. He said: "She made it happen. I had an idea for the music of the chorus but nothing else." Cloninger later won Dove Awards for Musical of the Year in 2001 for "Redeemer" and 2006 for "Grace That Amazes."
Watson recorded the music in a Houston studio when he was in a recording studio singing background on a Kim Boyce record. He recalled: "At the dinner break, I stayed behind for some solitude. (Producer) Paul Mills' keyboard was hooked up through these huge wall speakers in the control room, so I turned them up and started playing. Something about the sound in that room was inspiring and I pretty much finished it on the spot."
Watson sings this in a high key. Executive producer Neal Joseph was concerned that the singer-songwriter might regret singing it so high, as he could be singing the song for quite a while. He admitted: "I wish I had listened. But the truth is, unless you're going for it vocally and knocking the sides of the box out a bit, it just doesn't sound as good." (all quotes from CCM Magazine presents 100 Greatest Songs In Christian Music)
Stephens Stills played timbales on the Bee Gees hit, "You Should Be Dancing." He was in the next door studio laying down a Crosby, Stills and Nash album and could hear Saturday Night Fever being recorded. Stills recognized its potential to be a monster hit and he wanted to contribute.