“New Kid in Town” takes on two meanings. The literal interpretation involves the experience of a band becoming famous and being treated differently in society, because they are now seen as celebrities. As time passes by, another up-and-coming band becomes more popular than them, causing them to fade away into history.

The song can also be applied to a break-up in a relationship, where a person leaves because they found someone better.

“New Kid in Town” won the Eagles a Grammy Award for Best Arrangement for Voices in 1977.