[4][5] The song is a tribute to South Central Los Angeles party culture in the hip hop soul style popular at the time.

[2][4] It features Jordan singing over an enhanced Teddy Riley drumbeat sample of Slick Rick's "Children's Story" which in turn has an added interpolation of the bass of Bob James' "Nautilus".

[11] Chuck Campbell from Knoxville News Sentinel found that the track "combines enough elements to make for an unavoidable crossover hit, as Jordan's lilting voice meshes with "phat" beats, an incessant title refrain and a sample of rapper Slick Rick's 'Children's Story'.

"[12] Connie Johnson from Los Angeles Times felt the American R&B crooner and songwriter "has a youthful bravado", describing the song as "hard-slammin'".

[14] Another Melody Maker editor, David Stubbs, noted its "auto-pilot, fast-buck, anthemic swingbeat with the usual ring-a-ring-a-roses singalong chant and laboured partytime chorus.

[16] Ralph Tee from Music Week's RM Dance Update wrote, "This record is typical of everything that urban contemporary soul is about with its chugging swing/funk rhythms and intense Aaron Hall-style vocal and it's been flying out on import lately.

[17] Another RM editor, James Hamilton, described it as a "soulfully whined, chanted and rapped rolling jackswing joller" in his weekly Dance column.

[18] Mark Frith from Smash Hits gave 'This Is How We Do It' four out of five, adding, "He is Montell Jordan, and he's a very clever bloke, who's made a record that combines the best of gangsta rap with a fantastic classic soul voice."