The songs on Book of Dreams were recorded at CBS Studios in San Francisco, California; the basic tracks were recorded at the same time as the basic tracks for the Steve Miller Band's 1976 album Fly Like an Eagle.

John Palladino was the album's executive producer and the recording engineer was Mike Fusaro.

The recordings were later mixed by Jim Gains with assistance from Win Kutz and were mastered by Ken Perry.

The Bay State Banner wrote that the album "is, for the most part, firmly within the California soft-rock mold exemplified by the Eagles.

"[10] AllMusic gave the album a rating of 4/5 stars, calling it "a highlight of the '70s classic rock era and one of Miller's finest releases."