Justin Bieber's manager Scooter Braun put the pair in touch after Owl City, real name Adam Young, expressed an interest in collaborating with the 'Call Me Maybe' singer.
"Actually [I found out about the track] through [my label head] Scooter Braun. He sort of played me the song in one of the first weeks I came down to LA to meet him," she told MTV.
"I heard it and I was just like, 'This is amazing. I would love to sing on this'. [Braun was] like, 'Great, 'cause Adam wants you too'. So it just worked out, and I really love the song."
'Good Time' will appear on Jepsen's debut album, which is due out in September, as well as Owl City's The Midsummer Station, which will be released in August.
"It was this whole worlds-collide thing, and it was this kind of dream come true. I can't believe it happened," Young added. "[It was] so kind to lend her talent to this song, so yeah, it worked out. I feel like it's one of those songs, it kind of always needed to be a duet. That was the initial idea from step one.
"I feel like every artist is inherently granted one shot to sing about having a good time in his or her life, and six months ago, I realised I hadn't cashed in my chips yet. So I thought, 'I'm gonna sit down and I'm gonna give this a shot and get my friend Carly to sing on it'. The final product rarely exceeds your expectations, and this thing just kind of happened."
Listen to Owl City and Carly Rae Jepsen's duet 'Good Time' below: