The song was met with positive reviews from the majority of music critics. Billboard gave a positive review calling the track "another slice of hug-warm ecstasy" and gave praise to the "boiling strings, rattling synthesisers, and bass-heavy-beats" saying "it shows they know how to bring a few new tricks to the table". Both Q and Rolling Stone offered similar praise, and also noted that it was another step in the right direction. Altsounds.com gave a similar review remarking that there are "Drums that you would expect in a Rihanna song and melodies you would expect from a band like Friendly Fires and the "oohs" from 3OH!3 is what you first hear. That is, of course, until Chris Martin's vocals come into play and there is no doubt in your mind that this is Coldplay. A wonderful chorus of "para-para-paradise" reminds you just how good they really are. It will remain with you for weeks to come, like that new piece of clothing you just can't get enough of".

About.com said, in a three-and-a-half star review, that "even when Coldplay sound a bit like they are spinning their wheels musically, it can still have quite beautiful moments." The review called the opening fanfare "simply gorgeous" but felt the rest of the song did not hold up as well as it could have. NME gave a more mixed reaction to the song and felt that "It's hard to say what the band is aiming for with the song. To replicate the epic football stadium 'moment' of 'Yellow'? The energy of a 'Viva La Vida'? If so it doesn't quite work on either count" but continued "if you're going to have a mid-paced Coldplay-by-numbers single-single, you may as well have one as grand and gorgeous as 'Paradise'".

"Paradise" became a top five hit in 16 countries. In the United States, it peaked at number 15 on the Billboard Hot 100. Following the release on 12 September 2011, "Paradise" was revealed to be chart ineligible in the United Kingdom, having been offered as an "instant grat" (immediate download) for anyone who pre-ordered the album, Mylo Xyloto. The release of the album on 24 October 2011 saw "Paradise" debut at number 14 on the UK Singles Chart with sales of 27,277 copies (the track had a total of 118,547 downloads in the six weeks of chart ineligibility). After being made purchasable at 59p (instead of 99p) on the UK's iTunes Store and being played on the X Factor final, "Paradise" regained momentum in the UK and climbed up to number two on 18 December 2011. On 1 January 2012, almost four months after its release, "Paradise" peaked at number one, becoming the first number-one single of 2012 in the UK and becoming Coldplay's second UK number-one single after "Viva la Vida" in 2008. The song has sold 1,200,000 copies in the UK as of April 2017. As per ECAD, "Paradise" was the most played song across Brazilian radio between 2013 and 2023.

"Paradise" was first played live before an audience on the night of 9 September 2011: it was shot before the studio audience of the Parisian music TV show Taratata on French television France 2. The crowd's response to this first performance was described as "unmistakable" by one of the band's roadies.