The Blue Virgin Isles album was mainly recorded in Hollywood, California[1] with a large number of noted American and English musicians, among them Jim Keltner, Jay Graydon, Lee Ritenour, Fred Tackett, James Newton Howard, Dr. John, John Mayall, Chuck Domanico, Mike Melvoin, four of the future members of Toto; Jeff Porcaro, Steve Porcaro, David Hungate and Steve Lukather, and backing vocals by David Cassidy, Venetta Fields and Sherlie Matthews.

"Take Me Back To Hollywood" was a re-recording of Swedish hit single "Chapeau-Claque" from the preceding album Franska Kort, produced by Benny Andersson and Björn Ulvaeus, Michael B. Tretow and Gärdestad himself.

Despite this and a number of other personal appearances in West Germany, The Netherlands, the UK, the US and the Scandinavian countries in the winter of 1978 and the spring of 1979 as well as receiving generally favourable reviews by music critics, Blue Virgin Isles was only a moderate commercial success; in Sweden the album peaked at number 29 on the Albums Chart and only spent one week on the chart.

Despite the added Eurovision exposure, the second attempt to promote the Blue Virgin Isles album consequently met with the same result as the first, both internationally and in Sweden.

Blue Virgin Isles was released on CD in 2009, as part of the 8-CD box set Helt Nära Dig - Samlade Album.