Gallagher was born in Ballyshannon, County Donegal in 1948. His father Daniel was employed by the Irish Electricity Supply Board, who were constructing Cathaleen's Fall hydroelectric power station on the Erne River above the town. The family moved, first to Derry City, where his younger brother Donal was born in 1949. His mother, Monica, and the two boys then moved to Cork, where the brothers were raised.

Gallagher played a worn sunburst 1961 Stratocaster (Serial Number 64351) for some years. It was reputedly the first in Ireland,and was ordered from Fender by Jim Connolly, a member of The Irish Showband. In 1961, Connolly ordered a cherry red Stratocaster through Crowley's music shop of Cork's McCurtain Street. When Fender shipped a sunburst Stratocaster instead, it was put up on sale in 1963 as a second-hand instrument, which Gallagher bought in August 1963 for just under PS100. Speaking about Gallagher's purchase, his brother Donal recalled: "His dream ambition was to have a guitar like Buddy Holly... This Stratocaster was in the store as a used instrument, it was 100 pounds... in today's money you couldn't even compare you might as well say it was a million pounds... my mother was saying we'll be in debt for the rest of our lives and Rory said well actually with a guitar like this I can play both parts, rhythm and lead, we won't need a rhythm player so I can earn more money and pay it off so the Stratocaster became his partner for life if you like."  The guitar was extensively modified by Gallagher. The tuning pegs and the nut were replaced, the latter interchanged a number of times. The pickguard was also changed during Gallagher's time with Taste. Only the middle pick-up is original. The final modification was the wiring: Gallagher disconnected the bottom tone pot and rewired it so he had just a master tone control along with the master volume control. He installed a 5-way selector switch in place of the vintage 3-way one.  Most of the paint was removed from the guitar in 1967 or 1968 during the Taste period, as evidenced from contemporary photographs. Although the Strat was left abandoned in a rainy ditch for days after being stolen from the back of a tour van in Dublin, this is not believed to have caused any ill effect. A borrowed Telecaster was also stolen at the same time but never recovered. When the Strat was recovered two weeks later, Gallagher swore he would never sell it or paint it. The paint removal and appearance of extensive road wear was in keeping with Gallaghers public persona and image.  It also had a period of time of having a replacement neck, with the original neck bowing due to the amount of moisture it absorbed during continuous touring. The neck was taken off and left to settle, and was eventually reunited with the Strat after returning to its correct shape. Other quirks include a 'hump' in the scratch plate which moves the neck pick-up closer to the neck on the bass side, and a replacement of all of the pick-ups, though this replacement was due to damage rather than the perception of a tonal inadequacy. One final point of interest is that one of the clay double-dot inlays at the 12th fret fell out and was replaced with a plastic one, which is why it is whiter than the other clay inlays. On 21 and 22 October 2011, Rory's brother Donal brought the guitar out of retirement to allow Joe Bonamassa to perform with it on his two nights at the London Hammersmith Apollo. Bonamassa opened both night's performances with his rendition of "Cradle Rock" using Gallagher's Stratocaster.

What was the guitar like?
The guitar was extensively modified by Gallagher. The tuning pegs and the nut were replaced, the latter interchanged a number of times.