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Dancing on the Ceiling was shot at Laird Studios in Culver City and at the LeMondrian Hotel in West Hollywood. The video reportedly cost somewhere between $350,000 and $500,000, making it the most expensive short form music video productions at the time.
In the video, Richie and friends attend a party and dance on the ceiling reminiscent of Fred Astaire's routine in Donen's 1951 film Royal Wedding. Also, Rodney Dangerfield and Cheech Marin make cameo appearances.