Composed in 1959. In June of that year, R. Douglas Gibson, a friend of Poulenc's, approached several composers, including Poulenc, with a proposal for a collaborative work to celebrate the centenary of the British publishing house Chester. At that time, Poulenc had just finished a work based on Manuel de Falla's El amor brujo. Poulenc therefore suggested to Gibson, "I think the best idea would be for each composer to contribute a piece related to Falla's name," and informed him that he had a suitable, newly completed work at hand. Due to this background, the work is dedicated to Gibson.

Poulenc and Falla became acquainted through Poulenc's piano teacher, Ricardo Viñes, and maintained a close friendship until Falla's exile to Argentina in 1939 due to the Spanish Civil War. Falla was also the dedicatee of the "Trio for Piano, Oboe and Bassoon", and Poulenc spoke about Falla's character and music in a late interview with Stéphane Audel, Poulenc parle: Musiciens et poètes (Poulenc Speaks: Musicians and Poets).

El amor brujo, the original source for the Novelette in E minor, is an orchestral work lasting approximately 25 minutes. Therefore, Poulenc borrowed only the gently undulating melody played by the flute preceding the cello solo in the slow section in 7/8 time. This melody serves as the work's main theme, with the remaining sections constructed from free ideas based on this theme.