The chorus repeats the line "Smoke on the water" to create a vivid image of the smoke rising above the lake, which is Lake Geneva. The song also mentions the gambling room of the Montreux Casino and how it "burned like a dog." Other notable lines include "We all came out to Montreux on the Lake Geneva shoreline," "Funky Claude was running in and out, pulling kids out the ground," referring to the venue's owner Claude Nobs assisting in the rescue, and "When in silence we remember it all, of a time long past we used to call home," reflecting on the aftermath and the memories of that night.
The song became one of Deep Purple's most successful and well-known hits and has been covered by numerous other artists over the years.