It was recorded at the sessions for Days Like This which took place at Wool Hall Studios at Beckington and Real World in Bath in 1993-1994.
Michelle Rocca, Morrison's longtime girlfriend, featured on the cover of the Days Like This album and the couple had become engaged in March 1995 shortly before the release of the album. Morrison had dedicated his song "Have I Told You Lately" to Rocca when he appeared at the IRMA awards in Dublin, during the same month.
"Perfect Fit" was the opening tune on the album and was described by Johnny Rogan as being "a transparent paean to Rocca." The song opens with the lines:
Now baby just lately you've been holding back too much
Your looks and my language, this could be the perfect touch
What you are asking fits with everything on my list