"I Could Be Happy" is a song by Scottish new wave band Altered Images, released as the first single from their second album, Pinky Blue.

Their second top-10 hit in the UK, the song peaked at number seven in December 1981, and remained on the chart for 12 weeks.

[citation needed] MTV initially accidentally said the song was from their Happy Birthday album.

[citation needed] The band members are shown holding different pastel pieces and playing them like they were their musical instruments, and singer Clare Grogan is shown singing the "I could be happy, I could be happy" part in scenes where those lyrics are on the screen with a dot weirdly moving around, but hitting each syllable in time.

Near the end, the band members put their pieces down to show it draws a very colorful happy face, then the video ends with Grogan riding out the song with the band playing their real instruments.