Written by Minogue, Steve McEwan and Nathan Chapman, and produced by Sky Adams, "Dancing" was the singer's first material with BMG and Liberator, after finishing her contract with British label Parlophone two years prior.

Directed by Sophie Muller, the music video features Minogue dancing and singing in several backdrops that were inspired by the Country and Western culture, such as the work of Dolly Parton, and used motifs and imagery revolving around death.

To promote the single, Minogue performed the song on her Kylie Presents Golden tour, and at several gigs and shows including Ant & Dec's Saturday Night Takeaway, Sport Relief, the Echo Music Prize in Germany, and when she headlined Radio 2 Live in Hyde Park.

In 2016, Minogue released her final studio album with long-term record label Parlophone, entitled Kylie Christmas: Snow Queen Edition.

[6] Throughout that year, Minogue worked with writers and producers for her fourteenth studio album including Amy Wadge, Sky Adams, DJ Fresh, Nathan Chapman, and teamed with previous collaborators Richard Stannard, The Invisible Men and Karen Poole.

[15] Similarly, Nick Reilly from NME noticed Minogue's "unlikely foray" to Country music, but complimented the track's progression to the "huge pop chorus".

[18] Minogue commented about the track's production and entire form in an interview with Herald Sun in Australia; "You've got the lyrical edge, that country feel, mixed with some sampling of the voice and electronic elements, so it does what it says on the label.

[20] A limited edition CD single were distributed in Australia and New Zealand for the annual Mardi Gras Fair Day, which included the standard version of the album and a T-shirt.

Joey Nolfi from Entertainment Weekly called it a "welcome return to form for the singer-songwriter", and believed it to be her most "refreshing" offering since her work on Impossible Princess (1997).

[12] Matt Bagwell, writing for The Huffington Post, wrote an article defining 10 moments of Kylie's career where she "redefined pop music", and listed Golden and "Dancing" as one of them; he called it her most "surprising" material yet, and praised the songwriting for being more "in-depth".

[28] Daniel Kreps from Rolling Stone described it as "euphoric", whereas Idolator writer Mike Wass called it a "cute country-pop hybrid with an instantly hummable chorus.

She compared it to "Dancing on My Own" by Swedish singer Robyn, believing it to be "one of those songs that's a total bop but which, after a couple of merlots, might push you into the foetal position.

[31] Although Similarly, MuuMuse's Bradley Stern acknowledged that it wasn't what was "expected", but concluded that "Dancing" is a "perfectly fine first step into this bold new era, and an assurance that she's going to keep doing what she does best until the very last shimmy,".

[32] Cameron Adams from The Northern Star believed the track's sound would "divide" fans, but also compared its appeal to the work of Impossible Princess—which made a similar impact.

Tim Sendra from AllMusic chose it as a standout track, and praised Minogue's ability to pull of both contemporary pop and country music.

[35] Pitchfork editor Ben Cardew opined that tracks like "Dancing" stay true to Minogue's dance-pop style, and described it as "genuine brilliance."

The audio-only video features the single's artwork, consisting of her wearing a cowgirl outfit and leaning back while sitting in front of a stage.

She also closed her Golden Tour with "Dancing", where she wore a teal playsuit paired with grey embroidered thigh high boots.