[2] The title track was inspired by a belief of the Indigenous peoples of Australia called Dreamtime.

The initial recording sessions for Dreamtime began in late 1985 with producer Laurie Latham, who had worked on the band's previous album Aural Sculpture.

A few months were spent working on a handful of tracks before the Stranglers and Latham parted company.

[4] Latham felt the songs needed more work from the band and had suggested a break in recording.

Cornwell handles the lead vocals on "You'll Always Reap What You Sow", as the band felt Burnel's "operatic" delivery didn't suit the song.

[11] A positive review from CMJ New Music Report said that the Stranglers are "a prime example of a band that has streamlined their sound and still retained much of their bite as well as their signature."

"[8] Ira Robbins of Trouser Press called it an "unfocused time-filler", writing, "Accomplished but bereft of ideas or concept, Dreamtime is a soporific, characterless nightmare.