Interviewed in May 1967, Ray Davies stated that he wrote "Waterloo Sunset" having had "the actual melody line in my head for two or three years".

[5][6][7][nb 1] The lyrics describe a solitary narrator watching (or imagining) two lovers passing over a bridge, with the observer reflecting on the couple, the Thames, and Waterloo station.

[19] In Britain, the song is commonly considered to be Davies' most famous work, and it has been "regarded by many as the apogee of the swinging sixties".

[20] Highly esteemed for its musical and lyrical qualities, the song is commonly the subject of study in university arts courses.

"[24] AllMusic senior editor Stephen Thomas Erlewine concurred, citing it as "possibly the most beautiful song of the rock and roll era".

British singer-songwriter Cathy Dennis recorded a version of the song that was released as the second single from her 1997 album, Am I the Kinda Girl?.

The reviewer wrote, "The approval of Ray Davies — who appears in the video — will help the cause of this cover which captures the atmosphere and laziness of The Kinks' original.

"[49] In a 1997 review, the magazine gave it two out of five, adding, "Ray Davies's song is given an unremarkable treatment by the former dance chanteuse, but television exposure should help this reach the Top 40.

"[50] The accompanying music video for "Waterloo Sunset" consists of Dennis singing the song whilst travelling alone in a taxi driven by Ray Davies in a cameo role.