The song was written in response to the group being labelled as "pop musicians" from their previous singles "She's So Fine" and Wedding Ring" along with their debut album Easy.

The song is based around a 12-string guitar riff played by guitarist Harry Vanda and sees influences in both British rhythm and blues and jangle pop.

By mid-1965, the Easybeats had established themselves as the most popular band in Australia, owing to their two top-ten singles "She's So Fine" and "Wedding Ring", both upbeat pop songs regarding love.

[6] On the song, Vanda plays a twelve-string electric guitar,[7] giving it a distinct "Byrds-esque" feel of jangle pop, while simultaneously incorporating rhythm and blues elements from their debut single "For My Woman (1965).

[8] As performed by the Easybeats, "Sad and Lonely and Blue" was written in the key of B major, characterized by Vanda's alternating guitar strokes, to which bassist Dick Diamonde provides a counter-melody in between strums.