Response was positive, with Metacritic assigned album an aggregate score of 86 out of 100 based on 7 critical reviews indicating "Universal Acclaim". The Allmusic review by Ronnie D. Lankford, Jr. awarded the album 3.5 stars, stating, "Blues Dream is a perfectly chosen title: the material, steeped in the blues, is approached in a lazy, dreamlike fashion. Frisell's fondness for putting unusual combinations of instruments together adds to the overall effect, leaving the listener to wonder why no one has ever tried this before. Blues Dream is a lovely release that should satisfy Frisell fans as well as jazz, country, and blues fans looking for a genre-bending experience.".PopMatters' Will Layman said "Blues Dream is a movie for your ears, a soundtrack for your passage through a daydream, a kind of classical music even: a set of most careful compositions that orchestrate sounds beyond our imaginations. Blues Dream moves from beautiful to strange and back again. But it’s a classic". In JazzTimes, Bill Shoemaker was less enthused writing "Certainly, Blues Dream will reinforce the media consensus that Frisell is an American original. However, this is a strangely antiseptic album. ... Yet Blues Dream is not a compelling album. ... It’s a pat atmosphere only occasionally disrupted by a busy loop or a blast of distortion from Frisell, or a raucous horn statement".