John Prine Live was taped mostly during a three-day stint at The Coach House in San Juan Capistrano, California.

As he explained to David Fricke in 1993, Oh Boy needed product: "We didn't have another artist to put out.

Prine is joined by Bonnie Raitt (who recorded "Angel from Montgomery" on her 1974 Streetlights album) and guitarist David Bromberg.

The version of "Souvenirs" is taken from a 1970s performance by Prine and Goodman from the TV show Austin City Limits.

Writing for Allmusic, critic William Ruhlman says of the album "With years of experience playing club dates, John Prine has evolved into a very entertaining live performer, and this album...presents him at his intimate best, telling funny stories and performing his most impressive material in unadorned arrangements.