Happy State of Mind was recorded in August 1968 at
Bradley's Barn studio in
Mount Juliet, Tennessee. The sessions were supervised by the studio's owner,
Owen Bradley, Anderson's long time producer. The record's production marked Anderson's tenth studio album to be recorded. The album contained 11 tracks. Six of the album's tracks were composed by Anderson, including the title track.
Happy State of Mind also included cover versions of songs previously recorded by other performers. The third track on side two of the record was a cover of
Merle Haggard's "
Today I Started Loving You Again". "Did She Mention My Name" was previously written and recorded by Canadian folk artist
Gordon Lightfoot. Another album track, "
The Unicorn" was first cut by
The Irish Rovers. Although not a cover, "
I Still Believe in Love", would later be recorded by
Jan Howard in 1969 and released as a single. ==Release and reception==