The lyrics on this blues-based rocker were very much improvised by Jeff Tweedy. It was recorded during a session that was going over time. Tweedy recalled to Redeye Chicago:
"Susie, my wife, she owned Lounge Ax at the time, and I was supposed to be home at a certain time so that she could go to work at the rock club to relieve her of hanging out with [our newborn son] Spencer. All of this stuff that you hear at the end of 'Dreamer in My Dreams' is me literally walking out of the studio, saying, 'That's it, I'm done. I gotta go.' It sounds like it's kind of, I don't know, maybe staged or something, but a lot of the lyrics were pretty much improvised."
This was the closing track of Wilco's nineteen-song double album, Being There. The record was sold at a single album price thanks to a deal between Jeff Tweedy and Reprise Records.
Tweedy didn't have particularly high hopes for this track. He recalled: "It was kind of like we were [recording] bonus material. I think we knew we had enough for an album, but we weren't really thinking about it being a double record yet, so we were just throwing all of the song ideas out there."
The Being There album takes its name from the 1979 Peter Sellers movie.