The lyrics of the song describe the experience of the two lovers of the title, hinting at a situation that saw the "Juliet" figure abandon her "Romeo" after finding fame and moving on from the rough neighborhood where they first encountered each other.

The song opens on an arpeggiated resonator guitar part played by Knopfler, who also sings the lead vocal.

"[citation needed] Record World called it a "compelling performance that's both beautiful and forceful", praising Knopfler's guitar playing and the "Dylanesque" vocals.

[10] Ultimate Classic Rock critic Michael Gallucci rated "Romeo and Juliet" as Dire Straits' 3rd best song, saying that it "bridges Shakespeare, West Side Story and a modern rock 'n' roll love story where fame, not family, is keeping the young lovers apart.

"[11] Classic Rock critic Paul Rees rated it to be Dire Straits' 4th greatest song, saying that most of it is "spine-tingling" and praising the "heart-tugging" refrain.