Proverbs are known to reveal truths about a culture used to either caution or advise. The popularity seems to arise from its aptness and succinct nature. This explains why the Igbos conceptualize it as “the oil with which words are eaten.” However, research articles concerned with the process by which proverbs are interpreted and understood are limited. Therefore, the aim of this chapter is to theorize a method for the interpretation and understanding of proverbs. The pertinent questions which this chapter seeks to answer are: how does understanding take place when a proverb is conveyed? It also seeks to answer the question of how understanding is reached in the mind of the recipient when a proverb is communicated. This chapter is an attempt to initiate a theory to account for the interpretation and understanding of Igbo proverbs by recipients.