We describe an explicit mechanism for the emergence of a dynamical holographic bulk from the structure of entanglement in a quantum state. We start with a generic system in complete isolation, assuming it has a classical limit involving coherent states. Then we entangle it with another system of that kind, and subject the pair to a decohering process. We make a number of broadly applicable and physically reasonable assumptions about this setup. First, we assume that the states selected by the decoherence (called pointer states) have the same local symmetries as the isolated systems, in a sense which is made precise. We also assume that the modular Hamiltonians of pointer states scale inversely with Planck's constant, so that the pointer states are highly entangled in the classical limit. Finally, we require the timescale of decoherence to scale in a certain way with Planck's constant, so that decoherence happens very frequently in the classical limit, but not too frequently. Given these assumptions, we demonstrate that the semiclassical evolution of the system is dominated by a certain dynamical generalisation of Uhlmann holonomy. We construct a coherent state path integral for this evolution, showing that the semiclassical fields evolve in a spacetime with one more dimension than the isolated case. The additional dimension is generated by modular flow.
Selection of the preferred classical set of states in the process of decoherence -- so important for cosmological considerations -- is discussed with an emphasis on the role of information loss and entropy. {\it Persistence of correlations} between the observables of two systems (for instance, a record and a state of a system evolved from the initial conditions described by that record) in the presence of the environment is used to define classical behavior. From the viewpoint of an observer (or any system capable of maintaining records) {\it predictability} is a measure of such persistence. {\it Predictability sieve} -- a procedure which employs both the statistical and algorithmic entropies to systematically explore all of the Hilbert space of an open system in order to eliminate the majority of the unpredictable and non-classical states and to locate the islands of predictability including the preferred {\it pointer basis} is proposed. Predictably evolving states of decohering systems along with the time-ordered sequences of records of their evolution define the effectively classical branches of the universal wavefunction in the context of the ``Many Worlds Interpretation". The relation between the consistent histories approach and the preferred basis is considered. It is demonstrated that histories of sequences of events corresponding to projections onto the states of the pointer basis are consistent.