"Carnival of Souls" went largely unnoticed by critics upon its initial release and received "delayed acclaim" in the ensuing decades, with numerous arthouse screenings in 1989 in conjunction with the Halloween season. It has since become regarded by many film schools as a classic, often praised for its lighting and sound design, in which "sight and sound come together... in a horrifying way." Some scholars, such as S. S. Prawer, consider "Carnival of Souls" more an art film than a straightforward horror film. The "Time Out" film guide commended the film's "striking black-and-white compositions, disorienting dream sequences and eerie atmosphere," adding that the film "has the feel of a silent German expressionist movie. Unfortunately, so does some of the acting, which suffers from exaggerated facial expressions and bizarre gesturing. But the mesmerising power of the carnival and dance-hall sequences far outweighs the corniness of the awkward intimate scenes."