According to liner notes about the song (in Rare Masters and Elton John's Christmas Party), the track and its B-side, both produced by Gus Dudgeon, were recorded during a session on 11 November 1973 at London's Morgan Studios,[7] which was owned by drummer Barry Morgan, who had played on several of John's early albums.

"Step into Christmas" was mixed to imitate the work of producer Phil Spector, using compression and utilizing his trademark wall of sound technique.

Later in the video John is seeing playing a guitar alongside drummer Nigel Olsson and then embracing him, and briefly with drum sticks inserted into the ends of his mouth.

In 2024, over 50 years after the song's original release, the video was remade as a behind-the-scenes reimagining starring Cara Delevingne as John.

John stated: "When someone suggested the idea of her playing me in a riff on the 1973 'Step Into Christmas' video, I just thought it was the perfect opportunity.