The song is basically about a guy who reminisces about a girl (Caroline) who sang in a band with him when they were teenagers one summer. He was the drummer and she didn't pay much attention to him, but he had a raging crush on her.
Lyrics
Caroline
my everything
you pull my heart string
and i would do anything
to have your company now
Caroline
you wore a nose ring
I think a g-string
and I could use your company now
We played in a band one summer
you would sing, i was the drummer
and when you did pat benetar
i would shoot my shining star
Caroline
long lovely and lean
we were just eighteen
and I could use your company now
Did you ever go to Paris
Did you find a worthy man
Did it turn out any better
When you traveled to Japan
Caroline
what could have been
if you just turned around
and threw a kiss at me
if you just turned your head
and said hello to me
I would say…la la la la la…