Johnston's musical work gained some notoriety when he moved to Austin, Texas. Johnston began to attract the attention of the local press and gain a following augmented in numbers by his habit of handing out tapes to people he met. Live performances were well-attended and hotly anticipated.
His local standing led to him being featured in a 1985 episode of the MTV program The Cutting Edge featuring performers from Austin's "New Sincerity" music scene. Subsequently he performed at the 1985 Woodshock music festival in Austin, where he was featured in a short documentary of the festival, Woodshock. Through the next few years Johnston toured extensively across the world, and continued to attract press attention. In 2008, Dick Johnston, Daniel's brother and manager, revealed that "a movie deal based on the artist's life and music had been finalized with a tentative 2011 release." His latest album, "Is and Always Was," is set to be released early this October.