It was written by Lynott and Midge Ure, who was a temporary member of Thin Lizzy at the time, as well as frontman of Ultravox.
"Yellow Pearl" originated during a Thin Lizzy tour of Japan in September 1979, during which time Midge Ure was playing keyboards in the band.
"I was never a keyboard player by any stretch of the imagination," Ure admitted, but added that Lynott kept him in the band to add an extra dimension to the sound.
[1] At rehearsals and soundchecks Ure would often play around with the riff to "Yellow Pearl", and Lynott remembered the tune when recording songs for Solo in Soho.
"[1] Lynott and Ure were also influenced by the new technology that they saw in Japan, such as the new Sony Walkman, and by a trip to see the Yellow Magic Orchestra.
Lynott later said, "It has made me a fortune; every time I see Top of the Pops the cash register in me head starts ringing."