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In a review for AllMusic, Jim Newsom wrote: "Neatly capturing Flora Purim's many vocal strengths, Butterfly Dreams delivered on the great expectations generated by her work with Corea and turned out to be a high point in her recording career."
John Kelman of All About Jazz called the album "a diverse record that in its brief 37 minutes, affirms Purim's position as one of the most important musical voices to emerge from that era."
Writing for New Directions in Music, Marshall Bowden commented: "There is a freshness to voice here that is not always evident in later work... It doesn’t hurt that her collaborators here are among her most sympathetic... For those who enjoy light-sounding (as opposed to light on musical ideas) fusion tinged with Latin elements and airy, roomy vocalization, Butterfly Dreams is the perfect ticket."