The aim of this paper is to present a coherent understanding of Plato’s third kind. Firstly, I take a critical look at the explanatory procedure proposed by Plato himself to indicate the difficulties it encounters. Then I put forward my own approach, which is to establish two most general criteria of understanding the third kind and to overlap them with one another. As each of them leads to two different interpretations of the third kind, we arrive at four interpretive possibilities, which I then examine one by one as to their internal coherence and sense. Next, I compare them to see to what extent they are compatible with each other. Thus “the best possible” interpretation of the third kind will be chosen, namely the one that can justify most of the attributes Plato wishes his third kind to possess.