The film was popular at the box office in Australia. In November 1921
Everyones reported the film "is playing to very big business all along the line, the patrons being more than satisfied with a picture that makes more than an Australian appeal." Although now lost, at the time of its release
The Blue Mountains Mystery fared well in the United Kingdom, South America and the United States upon its initial release. The film reportedly was "appraised for exhibition purposes" at a value of £20,000 in the USA. According to
The Bulletin "after a good run in this country it [the film] emigrated to U.S.A., and that land embraced it like a Little Brother. Then its promoters, the Carrolls, almost forgot about it until they got a cheque for a thousand-odd from London. John Bull says he likes it fine."
Critical reception Sunday Times called it "finely directed and well acted. Marjorie Osborne... wears some beautiful gowns, importations from Paris and New York, and proves a surprise as an actress."
Everyones said: This is an Australian production that should do a great deal towards giving our overseas relatives an idea of the scenic qualifications of this country when tne subject of picture production is brought up. The story itself is somewhat melodramatic in construction here and there, but there is nothing unduly sensational, and the mystery is sufficiently enveloped in doubt to keep the audience guessing as to whom the original culprit is... the picture must have cost a great amount of money to produce. But it appears well worth it.
Triad called it an "uninteresting and disconnected" picture before stating, "Mr. Longford may be an excellent man when it comes to producing back-block studies and Woolloomooloo types; but he has not the vaguest beginning of an idea how to direct men and women in what is termed manners of society. His ideas of registering any sort of emotion are absolutely standardized."
Table Talk called it "a wonderful success". The London
Bioscope wrote of
The Blue Mountains Mystery: " …by its restrained acting, shows the force which a story gains in the telling. As a consequence, suspense is held throughout". The reviewer of the
Los Angeles Times said the film "will keep you on the edge of your seat to the last fade out." Actress Marjorie Osborne was admiring of
Lottie Lyell's contributions for
The Blue Mountains Mystery. She said of her: "I like brains in a woman, and she has them. Her work on this picture is more on the directing side than the acting. She assists Mr. Longford, and the two of them have plenty of healthy argument when their ideas about a scene are different." The November 1921 edition of the
Picture Show magazine also praised Lyell as being "enthusiastic, original, possessing charm and common sense" for her writing of the screenplay. Harrison Owen was unimpressed with the film, which he thought poorly made compared to overseas movies. Dan Carroll expressed satisfaction with the film and said he wanted to do another movie with Longford, Lyell and Arthur Tauchert in the vein of
The Sentimental Bloke. However the Carrolls were frustrated with the financial returns they were receiving and withdrew from production after this film and concentrated on distribution and exhibition. Longford and Lyell formed their own company for what became
The Dinkum Bloke. ==Resources==