We propose an interpretation of the quantum measurement process grounded in thermodynamics by introducing an entropy-based criterion associated with wavefunction collapse. In this interpretation, the Schrödinger equation remains universally valid, and wavefunctions never undergo a fundamental collapse. Instead, the apparent collapse emerges naturally from thermodynamic irreversibility and is observer-dependent. Central to our proposal is a rigorously derived inequality linking quantum coherence and environmental entropy production: C(t)≤C(0)exp(-(ΔSenv(t))/kB) where where measures quantum coherence in the system, and represents the entropy irreversibly generated in the environment. When this entropy surpasses a critical threshold, on the order of per qubit of recorded information, quantum interference is exponentially suppressed. Consequently, coherence recovery (recoherence) becomes practically impossible due to thermodynamic constraints, consistent with established fluctuation theorems such as Jarzynski’s equality and Crooks’ theorem. Collapse, in this view, is interpreted as an epistemic updating of knowledge, aligning with Bayesian inference, rather than a physical process. We also offer a derivation of the Born rule through maximum entropy inference and symmetry considerations related to environmental invariance (envariance), carefully avoiding ad hoc assumptions or untested physics. Our approach maintains relativistic consistency through the Tomonaga-Schwinger formalism, ensuring observer frame-independence and preventing superluminal signaling. Additionally, this thermodynamic interpretation provides conceptual clarity to quantum paradoxes such as Wigner’s Friend and delayed-choice scenarios by emphasizing the contextual nature of measurement and the associated thermodynamic costs. The emergence of classically stable "pointer" states is understood through their minimized entropy production, while quantum discord naturally diminishes with increased irreversibility. Furthermore, entropic considerations significantly suppress quantum recurrences. Finally, we propose an experimental validation strategy involving mesoscopic optomechanical systems, specifically designed to quantify how controlled entropy exchange affects interference visibility. Experimental access to is may be achievable through quantum calorimetry and particle scattering measurements. The proposed entropy-induced interpretation thus provides a coherent, experimentally testable connection between quantum measurement outcomes and the Second Law of Thermodynamics.