The song, like many from the Face Value album, is about Collins' anger and frustration about his first wife leaving him. The original demo was entitled, "I Miss You, Babe" and the lyrics were made much sadder. He re-wrote the lyric, gave the song a different tempo, and re-titled it "I Missed Again" in an effort to make it funny as opposed to sad, as Collins stated on Classic Albums "Making of Face Value". The demo is available on the single "If Leaving Me Is Easy".

The first single off Face Value in the United States, it peaked at #19 on the Billboard Hot 100 chart in May 1981. It also reached the top 20 in the UK. The video for the song features Collins on a white background singing and miming the various instruments.The song features a tenor sax solo by one of Britain's most famous jazz musicians, Ronnie Scott.