Critically appreciated, Barbra Streisand's Greatest Hits Volume 2 received a perfect five-star rating from both AllMusic and Rolling Stone.

[2] However, the version that appears on Barbra Streisand's Greatest Hits Volume 2 is a duet with American singer Neil Diamond, who also contributed to the song's lyrics.

[1][8] Overall, it features a total of three number-one hits ("The Way We Were", "Evergreen", and "You Don't Bring Me Flowers"), two top-ten singles ("Stoney End" and "My Heart Belongs to Me"), and three Top 40 songs ("Sweet Inspiration / Where You Lead", "Songbird", and "Prisoner").

It was given a perfect five out of five stars rating by AllMusic's William Ruhlmann, who called it a "genre-defining album [...] that drew upon the rock revolution to redefine classic pop for a new generation".

Additionally, Ruhlmann claimed that the success of the record stemmed from the fact that her singles in the 1970s were more "precious" and not always "show music material", contrasting to her songs in the 1960s.

[9] The reviewer of the Cash Box magazine wrote: "It is a testament to her talent that she has been able in the 1970s to generate as consistent a string of hits as she did in the '60s, as documented by this LP.

[16][17] The record spent a total of 46 weeks on the Billboard 200,[18] and by December 1984, the album and Streisand's Guilty (1980) had both sold over 4 million physical copies in the United States, becoming quadruple certified by the RIAA.

[25] It was also Streisand's first chart-topping album in the United Kingdom, where it spent four consecutive weeks at the highest ranking position and later was certified Platinum for sales upwards of 300,000 copies.

The Australian Recording Industry Association certified Barbra Streisand's Greatest Hits Volume 2 double Platinum in 2000, signifying sales upwards of 140,000.

[30] Although the compilation did not chart in Hong Kong, the International Federation of the Phonographic Industry certified the album Platinum for sales of 20,000 copies in 1982.