The song was recorded at Mercury Records' Chicago-based studio. While performing it in California, the band let Stevie Wonder hear the basic track for the song and he predicted that it would become a big hit. The song is noted for its sound of a siren recorded from a fire truck, heard at the beginning, as well as in the instrumental break in the middle. The edited version avoided much of the repetition of the music. The composer of Wild Cherry's hit song "Play That Funky Music" has indicated that "Fire" was the inspiration.