This research examines the role of interpretive action in the process of creating and transforming works of art and explores the relationship between art and interpretation as a dynamic, multilayered connection influenced by theoretical frameworks. The primary aim of the study is to analyze the reciprocal impact of interpretation and artistic creation, with a focus on the transition from Grand Theory to Neo formalism, and to investigate the theoretical and methodological implications of this shift in the fields of art and film studies. The research method is based on library studies and critical analysis. By conducting a comparative study of interpretive trends—especially in the field of cinema—from the 1960s to the emergence of Neo formalism in the mid-1980s, the research seeks to explain the epistemological foundations of this transition and its consequences. The main research questions are: How did Grand Theory become the dominant paradigm in the critique and interpretation of artistic works, and what limitations within this theoretical framework led to its decline? What new epistemological and methodological assumptions did neo formalism propose in contrast to Grand Theory, and how did this transformation influence interpretive approaches and the process of artistic creation? The findings of the study show that Grand Theory, relying on ideological metanarratives, constituted the main framework for film interpretation for nearly two decades. However, the emergence of neo formalism—with its emphasis on detailed analysis, cognitive formalism, and a redefinition of the relationship between the viewer and the artwork—opened new horizons in art and film studies. This transformation not only reshaped the methods of critique and interpretation but also found reflection in the process of artistic creation itself, leading to the development of new modes of cinematic narration and expression.