Co-written with John Beeby, the song was issued as the lead single to Hall's second solo album Three Hearts in the Happy Ending Machine (1986) on July 21, 1986.

[4] Kent Zimmerman of the Gavin Report responded positively to "Dreamtime", saying it is a "riveting record layered with hooks and soulful roots.

"[5] His colleague Dave Sholin also responded favorably in that he "leaves his mark of originality on this full blown production that's pop all the way.

"[6] A staff review from Cash Box was also welcoming of the track, praising its "blustery, infectious production.

"[7] In his four-star review of the parent album, AllMusic writer Stephen Thomas Erlewine singled out the song, calling it "tremendous" and "a swirling slice of arty new wave psychedelia that stands in direct contrast to anything Hall & Oates sent into the Top Ten".