The song was released as a digital download on 6 January 2017 through Mercury Records as the lead single from her fourth studio album Under Stars (2017).

Macdonald began writing songs for her fourth studio album in early 2014, two years after the release of Life in a Beautiful Light.

[4] When released, Macdonald claimed that she was unaware what the song "would lead to", paying tribute to its considerable success in European music markets, as well as its inclusion in the Disney movie Patrick,[5] a 2018 film which follows a young woman named Sarah as her whole life changed when her grandmother bequeaths her prized possession, a spoilt Pug named Patrick.

[11][12] Released as Macdonald's first official single in five years, "Dream On" received positive reviews from critics.

A Bit of Pop Music claimed that many may have "expected a departure" from her previous single, but highlighted that this was "not the case" with "Dream On".

It later commented "Amy sticks to what she knows best: upbeat pop/rock with characteristic vocals, soaring melodies and uplifting lyrics.