"[4] McTell wrote and recorded "Dreams of You" within a two-week period after returning from the United States, where he had taken a short break from the music industry.

Upon his return to Britain, his record company, Warner Bros., suggested releasing McTell's version of "Let Me Down Easy" as his next single.

In a 1976 interview with Sounds, McTell spoke of his refusal to perform the song live, "I've never done it on stage because there's no room to breathe.

"[6] Upon its release, Ray Fox-Cumming of Record Mirror & Disc commented, "It's all very pleasant and in excellent taste, but I can't help feeling that if he'd hammed it up a bit, he'd have had a better chance of getting a hit.

"[3] The Shepherds Bush Gazette & Hammersmith Post noted that the song "captures all that is good about Ralph McTell: gentle melody, soothing vocals and pretty lyrics", but felt the tune is "one that takes some time to grow on you and for this reason, the record may get lost in the Christmas rush".