Ritchie Blackmore's Rainbow band came about as a result of Deep Purple's connection with the band Elf. Elf's self-titled debut album was produced by Deep Purple members Roger Glower and Ian Paice who happened to see Elf auditioning in 1972. Elf's debut album lineup consisted of Ronald Padavona (later Ronnie James Dio) – on vocals and bass, David Feinstein on guitars, Micky Lee Soule on piano and organ, and Gary Driscoll on drums. Craig Gruber was added on bass and Steve Edwards on guitar for their next two albums; both of which were produced by Roger Glover. Elf enjoyed success as an opening act for Deep Purple.
Glover asked Dio to sing on his solo album, The Butterfly Ball and The Grasshopper's Feast which got the attention of Deep Purple guitarist Ritchie Blackmore, who wanted to record a solo album. Apart from guitarist Steve Edwards, he decided to add some other musicians in Elf for this album, and the band Rainbow was formed.
During studio sessions in Tampa Bay, Florida in December 1974, Blackmore originally planned to record the solo single "Black Sheep of the Family"- a cover of a track by the band Quatermass - and the newly composed "Sixteenth Century Greensleeves". Other musicians involved included singer/lyricist Dio, drummer Gary Driscoll, and cellist High McDowell of ELO. Blackmore decided to extend the sessions to a full album and the other members of Elf, keyboardist Micky Lee Soule and bassist Craig, were used for the recording of the album in Musicland Studios in Munich, West Germany.
Though it was originally planned to be a solo album, the record was billed as Ritchie Blackmore's Rainbow, and later progressed as a new band project. Blackmore and Dio did promotional work for the album. Shortly after the album was released, all Elf members (except Dio) were sacked and Blackmore recruited new musicians for subsequent Rainbow albums. This first line-up never performed live, and the live photos used in the album art are of Blackmore while with Deep Purple and of Elf playing live.