Lloyd Kennedy died after a knife penetrated his chest on the street outside a Webb Street property.

Adam Jay Azzi has pleaded not guilty to murdering Mr Kennedy during the incident on November 6, 2016.

He is also fighting a charge of intimidating Kennedy's best friend, Nathan Vercoe, with a knife during the incident.

Azzi has admitted to being outside the home with the late man and Mr Vercoe when the incident occurred.

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It's also agreed that Mr Kennedy died as a result of the knife injury, and that it occurred outside the home on the date.

Mr Kennedy's partner, Sianne Mather was distressed while answering questions from prosecutor Paul Kerr in the Wagga Supreme Court on Wednesday.

She had two children with the late man, who worked as a silo builder for Kotzur.

He had been due to travel to Lake Cargelligo the day after his death, the court heard, and Ms Mather was asked if she had been keen to spend time with him before he left.

She agreed and burst into tears.

Mr Vercoe had a phone conversation with Ms Mather after the incident.

"I don't know," he allegedly said when asked why Mr Kennedy was stabbed.

"I don't understand it.

"He just stabbed him."

The court heard Mr Vercoe had lent Azzi's former partner, Lisa Restall, $200, and he had been struggling to get the money back.

The court heard Ms Restall lived at the Webb Street property, and that Azzi had been staying there for a few days.

Mr Kennedy and Mr Vercoe attended the property after drinking at Mr Kennedy's house on Douglas Road.

Azzi opened the door and Mr Vercoe asked if Ms Restall was home, which allegedly led to a dispute.

"F--- it Nath, don't worry about it, let's go," Mr Kennedy reportedly said.

The court heard Azzi shut the door and the pair walked off, but later re-opened the door.

It will be alleged Azzi came outside the Webb Street home with a table leg with a screw in it and a silver steak knife with a 10 to 12 centimetre blade.

The prosecutor said Mr Vercoe allegedly swung a piece of timber at Azzi as he came at him with the knife.

Azzi allegedly said words to the effect of "I'll f---ing stab you c---" but backed off as Mr Vercoe swung at him.

Mr Vercoe allegedly saw Azzi come into contact with Mr Kennedy, and lifted up his friend's shirt before seeing the stab wound.

Paramedics took him to hospital but he could not be revived.

Suzanne Cocks, a friend of Ms Restall, said Azzi had been giving off a bad vibe on the night.

Ms Cocks said she had tried to pick up Ms Restall at her Webb Street home, sometime between 8pm or 8.30pm on November 6, 2016.

She said she knocked on the door and called out to Ms Restall.

Ms Restall wasn't home but Azzi, who she only knew by his nickname, was there.

"I just got a very, call it woman's intuition, bad vibe feeling," Ms Cocks said.

Ms Cocks said Azzi had been taking big, deep breaths in and out.

"It was a woman's intuition," she said.

Mr Azzi allegedly murdered Mr Kennedy outside the home that night.

Defence barrister Eric Wilson addressed jurors on Wednesday and said the matter was a "sad situation", but one that would require jurors to be dispassionate.

The real question in the trial, he said, is what happened outside the home on the night.

The court heard Azzi wrote a 15-page letter to his daughter in May last year, asserting he was the victim of a home invasion.

He wrote that only Mr Kennedy and Mr Vercoe had been armed and chased him outside the home, and he grabbed some timber to protect himself.

The court heard police searched the area on the night, but no other knives were found.

The alleged murder weapon and bloody fingerprints were found at a neighbouring property on Neptune Drive the following day.

Six witnesses are expected to give evidence when the trial resumes before Judge Michael Walton on Thursday.