Eminem’s “Stan” mentions Phil Collins’ “In the Air Tonight,” repeating the urban legend about how the latter song was about somebody who failed to save somebody else from drowning during a fight.
In the song “Who’s Gonna Fill Their Shoes?”, George Jones mentions several classic country songs.
"No, there will never be another Red-Headed Stranger,
A Man in Black and Folsom Prison Blues,
Okie From Muskogee or*** Hello’ Darlin’***.
Lord, I wonder who’s gonna fill their shoes?
By the way, who put the “Ram” in the Rama Lama Ding Dong?
We had a related thread called “Clever musical cross-references” many years ago. Some of the ones that are mentioned there are melodic references instead of lyrics.
Veruca Salt references their own song, “Seether”, in “Volcano Girls” with the lyric
I told you 'bout the Seether before…
…The Seether’s Louise
Louise Post was a vocalist/guitar player in Veruca Salt. This is a direct reference to “Glass Onion” by The Beatles
I told you 'bout the Walrus and me, man…
…The Walrus was Paul
which was a reference to “I Am the Walrus”.
A few from Drive-By-Truckers album, Southern Rock Opera.
“Days of Graduation”:
Everyone said that when the ambulance came
The paramedics could hear “Free Bird” still playing on the stereo
You know it’s a very long song
“Ronnie and Neil”:
And out in California, a rock star from Canada writes a couple of great songs about the bad shit that went down
“Southern Man” and “Alabama” certainly told some truth
But there were a lot of good folks down here and Neil Young wasn’t around
Skynyrd was a bunch of Neil Young fans and Neil he loved that song
So he wrote “Powderfinger” for Skynyrd to record
But Ronnie ended up singing “Sweet Home Alabama” to the Lord
“Let There Be Rock”:
*And I never saw Lynyrd Skynyrd but I sure saw Molly Hatchet
And the band that I was in played “The Boys Are Back in Town”
And I never saw Lynyrd Skynyrd but I sure saw AC/DC
With Bon Scott singing “Let There Be Rock” tour
With Bon Scott singing “Let There Be Rock!”*
Another Dire Straits tune, “Walk of Life,” mentions three other songs in the first verse:
Here comes Johnny singing oldies, goldies
“Be-Bop-A-Lula,” “Baby What I Say”
Here comes Johnny singing “I Gotta Woman”
Down in the tunnels, trying to make it pay
Wait, that’s the name of an actual song by Brenda Lee?? I always thought he was just saying “Brenda Lee is coming on strong”! :eek: 
James Taylor’s That Why I’m Here references his own song Fire and Rain.
*Fortune and Fame such a curious game
Perfect strangers call you by name
and pay good money to hear Fire and Rain
again and again and again.
Oh, some are like summer coming back every year
got your baby, got your blanket, got your bucket of beer
I break into a grin from ear to ear
and suddenly its perfectly clear…*
StG
Maybe it doesn’t exactly fit the OP, but the same verse appears in “Every Little Thing She Does is Magic” and “O My God” by The Police, as well as “Seven Days” by Sting.
Do I have to tell the story
Of a thousand rainy days since we first met?
It’s a big enough umbrella
But it’s always me that ends up getting wet
Just remembered another one: “Gator Country” by Molly Hatchet mentions several other bands and songs:
Well, I’ve been to Alabama, people, ain’t a whole lot to see.
Skynyrd says it’s a real sweet home, but it ain’t nothin’ to me.
. . .
The Outlaws down in Tampa town is a mighty fine place to be.
They got green grass and they got high tides, and it sure looks good to me.
And more.
David Bowie’s “Young American” has the background singers joyously singing the line “I heard the news today oh boy” from the Beatles’ A Day in the Life.
“Unseen Power of The Picket Fence” by Pavement is about REM. It mentions the albums Chronic Town and Reckoning and the songs “So. Central Rain”, “Dont Go Back To Rockville”, “Harbourcoat”, “Pretty Persuasion”, “Camera” and “Time After Time”.
The 1962 remake of “The Twist” references the version from the year before, both of them recorded by Chuck Berry.
You mean Chubby Checker.
Eric Carmen’s “Make Me Lose Control” includes the lines:
“‘Be My Baby’ comes on”
“And then they play ‘Back In My Arms Again’”
“Jennifer’s got her daddy’s car, she’s playing ‘Uptown’ on the Studio”
“Jennifer’s singing ‘Stand By Me’”