[1] Twin Peaks gained a cult following after its original broadcast in April 1990, and "Falling" subsequently charted in 15 countries worldwide between 1990 and 1992, including Australia, where it reached No.

[7] Bill Coleman from Billboard described it as a "modern rock staple", propelled by the hit television series Twin Peaks.

"[8] Andrew Mueller from Melody Maker named it Single of the Week, declaring it as "lilting and lovely and should make you want to weep diamonds.

"[11] Diane Tameecha from The Network Forty wrote that "the hypnotic blend of the track's music and Cruise's aforementioned downy singing style is an unbeatable combination.

"[12] Roger Morton from NME felt the combination of Cruise's "spooky soprano" and the "sickly gliding instrumentation" make for "a charmingly Lynch-ean candy slug of a record.

"[16] A music video was produced featuring Julee Cruise performing the song through soft curtains and dramatic red lighting.

In 1990, the German house band The Mob released a four-track single entitled "Theme from Twin Peaks", which included three original mixes of "Falling".

In 2010, a cover of "Falling" by Girls Names, a noise pop band from Northern Ireland, appeared on a 15-track sampler, Young & Research.

American folktronica duo The Endless included instrumental and vocal renditions of "Falling" as well as other songs from Twin Peaks on their EP Holiday 2012, proceeds from which were donated to Médecins Sans Frontières, a humanitarian aid charity.

[50] In February 2016, Lily Fawn and Eric Hogg, recording as Songs from the Black Lodge, released a seven-song EP[51] containing six Twin Peaks covers and one original tune.