The album consists of live selections from their sold-out October 4, 1984, benefit concert at Carnegie Hall for the T.J. Martell Foundation.

The band's double-set performance, which included several blues and R&B standards, was highly successful, receiving mostly positive reviews from music critics.

Initially ranked as the top blues album of 1997, Live at Carnegie Hall peaked at number 40 on the Billboard 200, where it spent twelve weeks on the chart.

The album was ultimately certified gold by the Recording Industry Association of America (RIAA) after selling over half a million units.

Related to the album, two outtakes from the concert were released on the SRV box set in November 2000.