In 2013, the song was prominently featured in the closing moments of the final episode of the American crime drama series Breaking Bad, and subsequently charted in the UK for the first time at No.

"[8] Ham ultimately ended the relationship, partially as a result of Armstrong's lack of interest in Badfinger's recording and touring activities.

[1] Because Al Steckler, the head of Apple US, felt that it needed a stronger hook in the opening, he remixed the track with engineer Eddie Kramer in February 1972, applying heavy reverb to the snare during the first verse and middle eight.

[14] Evening Post critic Pete Butterfield said that at the beginning of the song it "has a sort of Tamla Motown feel but it develops into a Beatleish stroller".

[13] Mason said, "As on 'Day After Day', an undeniable melancholy suffuses this lost love song... this time, however, the sadness is couched in one of Ham's sweetest and catchiest melodies, giving 'Baby Blue' a smiling-through-the-tears quality, particularly in the way the tune modulates upward at the chorus.

"[13] Classic Rock critic Rob Hughes rated it Badfinger's 2nd greatest song, calling it "Pete Ham's passionate ode to Dixie Armstrong".

[20] Guitarist Joey Molland, the last surviving member of the classic line-up of Badfinger, tweeted about his excitement over the song's use in both Breaking Bad and the 2006 film The Departed.