The interpretation of theatrical texts is a key issue in theatre studies and performance pedagogy. For example, are there limits to interpretation? Is there a right way to read a dramatic text? This paper examines textual interpretation in the light of recent advances in the cognitive psychology of discourse, perception and action, and the recent resurgence of interest in the importance of the ‘real’ which is occurring in the humanities and in the psychology of embodiment. It is suggested that interpretation needs to be seen within its psychological constraints and that this in turn restricts the application of theories that regard textual interpretations as boundless.