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Plunging us into a half-historical, half-fantasy Paris in 1899, Luhrmann establishes a fairy-tale tone right off the bat. We're introduced to a talented but penniless poet named Christian (Ewan McGregor), a celebrity showgirl named Satine (Nicole Kidman), the greedy and melodramatic manager of the Moulin Rouge nightclub, and a wicked lustful investor known as "The Duke." Christian's talent for song is discovered by the artist Toulouse-Lautrec (John Leguizamo), who urges him to compose lyrics for a new play that will star Satine and promote the Bohemian subculture creed of "freedom, beauty, truth and love." Christian accepts, and is sent before Satine to have his lyrics approved. It's love at first sight … at least for Christian. He has a nasty rival for Satine's heart—the Duke. Will Satine choose the way of true love, and respond to Christian's poetic overtures? Or will she choose the road to fame and fortune, selling herself to the loathsome Duke, who will then finance the play?

Most critics are bewildered and impressed by Moulin Rouge's adrenaline-rush spectacle. Some like the exaggerated style, which is one part melodrama and two parts Loony Toons. Others complain about a lack of cake under the frosting. Michael Wilmington in the Chicago Tribune calls it "a rare picture that gets you intoxicated on the possibilities of movies." In the same town, the Sun-Times' Roger Ebert gave it three and a half stars, but also remarked, "It's like being trapped on an elevator with the circus." The U.S. Catholic Conference enthuses: "Luhrmann's wildly creative blend of diverse music and visual styles is a madly paced triumph of artifice over substance in its gushy valentine to romantic love." Michael Elliott at Movie Parables writes that Luhrmann's "greatest accomplishment was not the technical prowess he demonstrated, but rather the way he extracted total commitment from his cast. As bizarre or extreme as the characters may have been, the actors threw themselves into their roles with utter conviction. This is the finest work I've yet seen from Ewan McGregor, and his singing voice is perfect for musical theater … strong, clear, and highly emotive."

In other religious media, the bawdy humor and sexual nature of many scenes became a point of contention. Movieguide recognizes the "colorful and comedic cast of characters" and its "amazingly beautiful and elaborate set designs", but protests: "The movie's romantic worldview promotes erotic frenzy in the name of love." "True to the reputation of the nightclub," writes Preview's uncredited critic, "the patrons and performers partake of heavy drinking, drugs, and prostitution. The Can-Can dance is all about showing the women's underwear, or lack of it, and other revealing costumes invite male stares while the female performers invite the men for later assignations." This earns the film their rating of "quite objectionable."

But Focus on the Family's Lindy Beam defends these onscreen shenanigans. "What else can be expected from a show set in a cabaret/brothel? No attempt is made to soften the showgirls' job description; they make their living by getting men in bed. The clothing is scant, the dancing is seductive, and everyone is a commodity. Which is what makes Christian unique. When he and Satine first meet, he's not even thinking about sex." She argues that the film emphasizes the difference between sex and true love. She writes, "the film's definition of real love hits the bullseye. [Christian] is willing to commit to her forever. If Satine can be pulled from her old lifestyle, Christian's is definitely the kind of love that is powerful enough to do it." She does, however, protest the film's teenage marketing target as too young an audience for such sexy stuff.

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June (Web-only) 2001, Vol. 45