Speaking to Radio 1's Chris Moyles, the actor revealed that it took him some time to understand the final scenes of Christopher Nolan's mind-bending sci-fi thriller.
"I loved the movie Inception, it was absolutely great. I eventually understood it because Chris has a mind all of his own," he said.
Discussing the movie's spinning top - which signifies whether events are unfolding in dreams or reality - Caine suggested that it toppled after the movie cuts to black, meaning that Leonardo DiCaprio's Dom Cobb had safely reunited with his children.
He explained: "It drops at the end, that's when I come back on. Young people say to me, 'At the end, when you're there, is it real or is it a dream?' I say, 'If I'm there, it's real because I'm never in the dream'."