After having held the contest last in 1973, Luxembourg played the host for the 1984 Eurovision Song Contest. The total number of participants was 19, one country less than in the preceding year as Greece decided not to enter a song. The contest also clashed with Israel's Rememberance Day, so the country wasn't present in Luxembourg either. Ireland returned to the contest though, finishing second. The Irish song was written by former and future Eurovision winner, Johnny Logan, under his real name Sean Sherrard. The song Terminal 3 was performed by Linda Martin, who was going to win the Eurovision Song Contest in 1992 with another Johnny Logan song, Why Me?.

Sweden unexpectedly won the contest with the song Diggi-Loo Diggi-Ley performed by the group consisting of three brother called Herrey's. The Swedish brothers convinced the European juries with a spectacular choreography of their song and also because of wearing golden boots on stage. The song became a hit in lots of European territories, but is still rediculed today in English-speaking countries due to its title. The Italian entry I Treni Di Tozeur by Alice and Franco Battiato also became a smash hit in Europe despite the fact that it only came fifth.

The host country, Luxemburg, had problems finding a suitable venue. In the end, RTL decided to hold the contest in the tiny Théâtre Municipal and as a consequence, only VIPs, press and members of each country's delegation were allowed in. The presenter of the show, Desirée Nosbusch, was only 19 years old when she presented the contest, but she is nowadays seen as one of the best hosts ever in the history of the Eurovision Song Contest.