In 1899, a young English poet named Christian leaves his conventional life behind to embrace the bohemian lifestyle of the Montmartre district in Paris, France. He is quickly swept up into a group of artists led by Henri de Toulouse-Lautrec, who are preparing a show for the Moulin Rouge, the city’s most notorious nightclub. While there, Christian is enlisted to write a spectacular show called "Spectacular Spectacular." Amidst the backdrop of the raucous and hedonistic world of the Moulin Rouge, he soon finds himself entranced by Satine, the club's star courtesan, who dreams of becoming a legitimate actress.

Satine is the Moulin Rouge's sparkling diamond, but her life is complicated by her obligation to seduce the Duke of Monroth, a wealthy patron with the promise to finance the transformation of the nightclub into a proper theater. An accidental encounter leads her to mistake Christian for the Duke, and despite the mix-up, they are irresistibly drawn to one another. As Christian and Satine's secret affair develops, their love for each other grows stronger, standing in stark contrast to the artificial glamour and depravity that encompasses the Moulin Rouge. Their burgeoning romance threatens to unravel the ambitions of the club’s owner, Harold Zidler, who has his own stakes in Satine's involvement with the Duke.