(Greenbaum) was inspired to write the song after watching Porter Wagoner on TV singing a gospel song. Greenbaum later said: "I thought, 'Yeah, I could do that,' knowing nothing about gospel music, so I sat down and wrote my own gospel song. It came easy. I wrote the words in 15 minutes."[4]

"Spirit in the Sky" contains lyrics about the afterlife, making several references to Jesus, although Greenbaum is Jewish. (In a VH1 episode about famous one-hit wonders, Alice Cooper said that he was surprised to hear someone with a Jewish-sounding last name performing a song that seemed to be about Jesus).