The thesis analyses the role of radical discontinuity montage in the process of contracting and deconstructing viewers perception and distorting the line between filmic representations of reality and fantasy in postmodern films. In the theoretical part of this thesis, some main concepts and theories that underline postmodernism are explained. By reflecting upon those theories in analytical part it examines how these theories are applied in the case of David Lynch’s Mulholland Drive. And finally, in the conclusion thesis gives a proposition regarding crucial functions that radical discontinuity editing employs in constructing these types of narratives.