The paper raises the issue of allegorical interpretation, and its role and place in Plato’s philosophy. The first part of the paper shows the theoretical findings and explains the use of terms aίnigma, sýmbolon, hypónoia in Plato’s philosophy. The next part explores Plato’s attitude toward allegorical interpretation and the function of myth (mūthos) in his philosophy. Two important points are presented here regarding Plato’s critique. They serve as the criterion for the validation of myth in the ideal state: the role of myth in paideia and its relation to philosophical discourse.