This essay provides, for the first time, a model for identifying and analyzing “free indirect discourse” (FID) in narrative film, the most problematic mode of representing characters’ discourse which has received little attention from film theorists and critics. According to the established “dual-voice” hypothesis, FID is an ambiguous merger of the narrator’s voice and the character-focalizer’s, without one predominating over the other. The basic argument of the essay, then, is that FID occurs in a film at the moment when the spectator is not able to distinguish narratorial objectivity from characterological subjectivity. This characterizes the narrative text as polyvocal / polyphonic, leading to artistic ambiguity and such processes as “différance” and “deterritorialization.” Based on this theory, the researchers offer a detailed analysis of the textual markers and major functions of FID in filmic narratives. The model provided can be adopted for analyzing any narrative film.