It reached number seven on Billboard's Mainstream Rock chart in 1983 and a re-release reached number 76 on its Hot 100 chart in 1990 (after reaching number 78 in 1983).
Musically, the song came together in the band's rehearsal space in London while recording their second album, After the Snow. Producer Hugh Jones encouraged Grey to softly sing the vocal track, as opposed to his natural inclination to shout. He subsequently employed a softer vocal technique on the rest of the album.
"I Melt with You" was particularly popular in dance clubs and on MTV, peaking at number 60 on Billboard's Dance/Disco Top 80 in March 1983.
The song is among the top 500 songs ever played on U.S. radio.
The group received a lifetime achievement award at the BMI Awards in 2017, celebrating 3 million plays of the song.