"She was put up for adoption when I was 17 or 18, I think," the rocker, now 65, says on Thursday's airing of The Joy Behar Show of his daughter Sarah Streeter, who lives in England. "I was absolutely stone broke ... and so she was put up for adoption."
While the rocker had sporadic contact with Streeter – who is in her late 40s – since she learned in the 1980s that Stewart is her father, it is only recently that he has brought her into the fold of his family, according to the UK's Daily Mail.
The catalyst was the death of her adoptive parents.
"Since her mum and dad have died, we've tried to come together and be close together, and it's working out pretty well," Stewart says. "I never felt like I was her dad, because I didn’t take her to school, change her nappies, there was no paternal thing there, but I'm trying."
The rocker, whose wife Penny is pregnant with the couple's second child, has seven other children, including Streeter, his eldest child.
Streeter said recently she is finding the process of getting to know her father – which includes phone calls and family get-togethers – delicate but rewarding.
"There's no anger there," Streeter told the Daily Mail. "I never was angry about what happened really, just sad. But now I'm older I see things differently and realize that it has been as difficult for him over the years as it has been for me. Now we're at the start of a new chapter, and that’s wonderful."