"Moonlight Shadow" features Oldfield's touring vocalist Maggie Reilly, who had also sung on his previous albums. Oldfield had singer Hazel O'Connor sing on an early version of the track, which was then titled "Moment of Passion", but it failed to produce sufficient results. He then booked Reilly for a studio session, for which he prepared by drinking wine and writing a set of lyrics using a rhyming dictionary. Reilly sang the lyrics in a rock style at first, which prompted Oldfield to suggest a softer tone and "in the manner of a lullaby". The idea worked, despite recording the song in small sections and using multiple drop-ins which took some time to finalise and piece together.