Part 2

The more I reflect on the plot of Beetlejuice 2, the more I doubt that much of what happens in the film actually took place.

It's all written allegorically. Tim's work has always embodied Jungian themes such as archetypes and the shadow self, as well as his use of alchemy & numerology in the original Beetlejuice movie. For example, his use of the planet Saturn and its symbolism, as well as how he relates it back to Beetlejuice by having him wear several watches on his wrist, and freezing Adam & Wolf in time. "Sands of Time", "Saturn: the Father of Time".

You know how everyone who appears in your dreams is supposed to represent yourself?

Astrid = Lydia

"The images of alchemy are the most complete expression of individuation as a process, and they are therefore a valuable aid to understanding the symbolism of dreams." - Carl Jung

Astrid wears a silver dress, Lydia wears a red dress. In alchemy, (something Jung believed was a method to understand the psyche within our dreams) silver needs to be purified by red. Combined, these colours symbolise the union of spirit and matter, or the balance of opposing forces, essential for the completion of the alchemical process. So we have Astrid and Lydia symbolising the spiritual (silver/mercury) and the material (red/sulfur). This is why Lydia watches Astrid at the end of the dream getting married and having a baby. She is watching her dream representation living out her material desires.

They completed the alchemical process by fixing their relationship (forgiving yourself).

Astrid is so similar to Lydia, even storming off on her bike when Rory proposed. Rory also pushes Lydia to do the Ghost House show when we know that exploiting the dead is very OOC for her. If Astrid is Lydia, then Rory must represent her teenage feelings towards her parents. Her father married Delia who teen Lydia couldn't stand, and they both forced Lydia to move with them and adjust to their lifestyle.

Astrid and Lydia reconciling is Lydia reconciling with her past self. Through silver and red, spirit and matter, this is the completion of the alchemical process. Why did they put Delia in a purple dress alongside these two, when purple in alchemy symbolises the transmutation outcome? They could have chosen any colours, but the ones chosen just so happen to correspond with the story. Silver is spirit, Red is matter, Purple is the merging of spirit & matter, resulting in "enlightenment". You say Beetlejuice's name three times because in alchemy it's the number of completion (sulfur, mercury, salt).

And I must repeat myself: there is no clear indication of where Astrid's dream sequence begins. The sequence at the end seems to start after Lydia looks at the Maitlands' model with the lights as stars above her. Lydia is looking down at the town (the material realm), while her head is in the stars (the spiritual realm).

The whole Beetlejuice franchise is about alchemy, because Betelgeuse himself is an alchemist. He is the Trickster/Magician archetype, who is able to manipulate reality and able to traverse between the living and the dead, also known as rebirth.

Betelgeuse = Lydia's Masculine Self

Alchemical texts were concerned with achieving the coniunctio oppositorum (the union of opposites). This process is also known as "The Marriage of Opposites" or "Chemical Wedding". Whose marriage/wedding was important to the plot in both movies?

Delia finds her masculine self (Charles) thanks to Betelgeuse at the Soul Train. The Soul Train is the ferry which carries souls along the River Styx. It's the main river in the underworld that separates the living and the dead.

"The living and the dead; can they co-exist?" - Lydia Deetz

So, Lydia was watching Astrid (her dream self) get married and have the Beetlebaby. Everything Astrid goes through is a mixture of Lydia's fears and desires. Lydia's teen self feared that Betelgeuse was using Lydia as a way to have access to the living realm, and we know this because of Astrid's experience with Jeremy. However, by this logic, it also means Lydia desires marriage and a baby with Betelgeuse. Unfortunately, Lydia is in the material realm, while her masculine self is in the spiritual realm.

Canonically speaking, since we know Lydia loves horror films, dreaming of giallo movies aligns much better with her character than ignoring her ability to speak to the dead.