
Upon its release, the song garnered widespread critical acclaim and captured a sense of surreal euphoria. Critics praised it, saying, "Dancing Queen is beautifully produced: catchy and euphoric, the perfect backdrop for a song that encapsulates the carefree bliss of youth." The track features hooks built from lush vocal harmonies and the distinctive reverb-soaked wall of sound that characterizes the group. Its "sincerity and pure musicality have allowed it to endure beyond the disco era," solidifying ABBA's status as an international sensation and marking the beginning of the group's 'classic period.'
For the soundtrack of the 1994 Australian film "Muriel's Wedding," songwriters Ulvaeus and Andersson permitted the use of "Dancing Queen" along with other ABBA hits. The song was also included in the jukebox musical "Mamma Mia!" which premiered in 1999, adapted into a film in 2008, and featured in its sequel, "Mamma Mia! Here We Go Again," released in 2018.