The song tells of a lover serenading a "Beautiful Dreamer" who is oblivious to worldly cares and may actually be dead. Foster's works feature many dead young women, including his sister Charlotte and "Jeanie". Helen Lightner writes, "This sentimental ballad is folk-like in character with its repetitious but lovely melody and its basic harmonic accompaniment ... The quiet and calm of this mood is portrayed by the monotony of the arpeggiated accompaniment, by the repetitiveness of the melodic pattern, and by the strophic form itself."