This article provides an interpretation of David Lynch's (2001) film Mulholland Dr. as the dreamscape of Diane Selwyn, played by Naomi Watts. Viewers are caught in a story of murder, mystery, and lesbian love, only to realize that what they have witnessed is merely a dream. As Diane wakes up, memory flashbacks and hallucinations unveil the real events leading to the dream. The viewers are able to trace back the elements of the dream to their real-life sources and decipher the dream's secret agenda. Diane's dream is understood as an attempt to fulfill her deepest wishes and to alleviate her guilt for arranging the murder of her ex-lover. The dream is a failed attempt to escape reality, as well as a preparation for death. Whether or not one views Mulholland Dr. as inspired by psychoanalysis, Lynch's film is a masterful exploration of the unconscious workings of the human mind.