The New York Yankees, Toronto Raptors and other professional sports teams have played the song at games in the days after Monday's deadly blasts, with fans and players often singing along.
"There is a lot of comfort that music can offer," Diamond told The Associated Press. "In this particular situation, I'd much rather it not have happened than for 'Sweet Caroline' to become part of it. But it's obviously offering comfort to people and I feel good about that."
Diamond spoke Thursday night in Los Angeles at the Rock and Roll Hall induction ceremony. He said he intended the song, first released in 1969 and addressed to Caroline Kennedy, to offer solace.
"I wrote it in a hotel in Memphis, Tennessee," he said. "And I think there's a little bit of God in that song. I always have felt that. There's no accounting for what can happen to a song. But this one had something special to it."