The song was first recorded in Abbey Road Studios, London, by the band Wallace Collection, and released as the final track on their debut album Laughing Cavalier.

[5] The song was covered in 1970 by the German vocal group, the Günter Kallmann Choir, and this version was used on a popular easy listening record of the time.

I Monster's version was sampled in 2006 by American rapper Lupe Fiasco in Daydreamin’, featuring soul singer Jill Scott.

"Daydream" has been sampled on the following songs: In Norway, this song (the version of Franck Pourcel) has become widely known through its use as background music in a series of televised information snippets regarding mountain safety, produced by Hermann Gran at NRK and the Norwegian Red Cross and broadcast annually through the Norwegian Broadcasting Corporation, (NRK) chiefly around the Easter holidays.

The 2005 BBC television series How to be a Gardener written and presented by Alan Titchmarsh used "Daydream in Blue" as part of its extensive soundtrack.