I Was Only Telling a Lie by James Taylor explores themes of honesty, truth, and the consequences of deception. The song delves into the thoughts of someone who admits to lying but is caught between the simplicity of the lie and the complexity of its impact on their relationship. The lyrics reflect the internal struggle of the narrator as they come to terms with their actions. Poignant moments include the introspective realization of the damage caused by the lie and the subtle hints of regret and the yearning for redemption.