The song is notable as the winner of the Best R&B Song and a Best Rap Solo Performance and the first rap song to be nominated for Record of the Year at the 33rd Annual Grammy Awards in 1991 as well as the Best Rap Video and Best Dance Video at the 1990 MTV Video Music Awards.
It peaked at No. 1 in the Billboard Hot R&B/Hip-Hop Singles & Tracks and on the charts in several countries.
Along with Hammer, Rick James shares songwriting credits with Alonzo Miller because the song samples the prominent opening riff of "Super Freak".
The lyrics describe Hammer as having "toured around the world, from London to the Bay" and as being "magic on the mic", which Hammer says coincides with James' "beat that you can't touch".
The song lyrics "You can't touch this" and "Stop! Hammer time!" became pop culture catchphrases. Hammertime was later used as the title of a reality show starring Hammer on the A&E Network in the summer of 2009.