Every explanation costs you something else
The dream reading, the Hollywood-machine reading, the two-women reading: each makes a set of scenes work and leaves another set stranded.

01 The price of certainty
Every interpretation of Mulholland Drive is a trade. Pick the one that makes the most scenes cohere and you will find, almost immediately, a handful that refuse to follow. This is not a flaw in the readings — it is the design of the film.

The dream reading is the most widely circulated. In it, the film's first ninety minutes are the unconscious wish-fulfilment of Diane Selwyn, an aspiring actress who has watched Camilla Rhodes take the career and the lover that should have been hers. The sunny apartment, the audition that goes brilliantly, the amnesiac beauty who needs her — all of it is a dream Diane constructs before waking into the second half, the memory and the guilt and the pistol. This reading has serious support. Film critic A.O. Scott, writing in The New York Times in 2001, called the film's logic unmistakably that of a dream. Robin Wood, in a 2002 essay in CineAction, laid out the correspondence between the two halves with some care: the figures who oppress Diane in waking life become buffoons or subordinates in her dream, a recognisable mechanism of wish-fulfilment.
What the dream reading cannot comfortably absorb is the diner at Winkie's, where a man named Dan describes a nightmare to his friend, walks round the back of the building, and finds exactly what he dreamed. This scene exists before Diane has any reason to dream it and involves no character who appears in the second half. The dream reading has to either swallow this whole — call it a dream-within-a-dream — or quietly leave it in a corner.

02 What the other readings leave behind
The Hollywood-machine reading takes the film as a portrait of industrial cruelty. The Castigliane brothers, the Cowboy, the men who decide which actress gets cast — they are the real subject, and the rest of the film is the damage their system does to the people inside it. This is not a marginal view: Lynch at Cannes in 2001 was understood by several French critics primarily through this frame, and the evidence for it is real. The casting-couch logic, the director stripped of his choices, the way female identity in the film is always borrowed or assigned — it holds.
But the Hollywood-machine reading hits the blue box. When the box opens, it takes the film with it in a way that industrial critique does not explain. The miniature figures who tumble out, the cowering women, the film's immediate collapse into something that looks like punishment: a reading organised around power structures needs an additional theory to handle what is essentially a supernatural event on screen. You can supply one, but it is a supplement, not an extension.
The two-women reading — Rita and Betty as two aspects of the same person, desire and self-destruction, the idealised self and the punishing one — handles the blue box better than either alternative. It also handles the blonde/brunette doubling that runs through the picture and the way Club Silencio stages emotional truth as performance. What it cannot account for, at least not without effort, is the specificity of Dan and the dream at Winkie's, the precision of the ten clues Lynch placed in the DVD insert, or the fact that several of the clues point toward a coherent chronology rather than a symbolic one.
03 The residue each reading leaves
No single framework clears the board. What survives every reading — what every reading leaves as residue — is the film itself, which is arguably the point. Lynch has described filmmaking in terms of intuition and cinema rather than logical construction, and Mulholland Drive placed eighth in the Sight and Sound 2022 greatest films poll, a position that suggests critics have made peace with not resolving it.
The cost of each explanation is not a deficiency. It is the guarantee that the film stays alive. A reading that explained everything would close the film down; what we have instead is a structure that generates new readings while actively resisting the one that would end the argument. The Cowboy says attitude determines everything. In this film, so does the angle from which you look.