
During the mid to late 1970s, Air Supply's popularity in Australia had not yet been replicated elsewhere. In 1979, while in England, Russell discovered that the group's Australian label, Big Time Records, had sold "Lost in Love" to Arista Records in the U.S. Shortly after, the song became a hit on American music charts.
Cashbox described it as "soft rock with elegant acoustic guitar work, glistening harmonies, light rhythm, and electric piano touches." Record World referred to it as a "willowy ballad," noting that "the soft vocals and smooth flow are well-suited for soft rock fans and A/C pop."
The song was featured in the Family Guy episode "Emission Impossible," the 1981 American film Private Lessons, and the Australian film Hotel de Love.