Billy Elliot (JAMIE BELL) is an 11-year-old boy growing up in the coal-mining town of Durham, England in 1984. With his mother dead for less than a year and his father, Jackie (GARY LEWIS) and older brother, Tony (JAMIE DRAVEN), on strike against the local coal company, Billy spends his time caring for his grandmother (JEAN HEYWOOD) or in the boxing gym with coach George Watson (MIKE ELLIOT).
It's there one day that he spots Mrs. Wilkinson (JULIE WALTERS) and her ballet class. Immediately drawn to the dance form, Billy eventually joins Mrs. Wilkinson's young daughter, Debbie (NICOLA BLACKWELL), in the class, but doesn't tell anyone in his family. Despite not being very good, Billy perseveres, with his instructor sensing an innate talent buried somewhere within him.
At home, things aren't going as well. The tension among the family members is ripe and that explodes when Jackie learns of Billy's recent activities and even goes so far as to question his son's sexuality, a point that would have added weight if he knew that his son's platonic friend, Michael (STUART WELLS), was an apparently gay transvestite.
As the coal miners' strike continues and various "scabs" cross the picket line, Billy continues with his training, hoping to gain an audition one day with the Royal Ballet School, all while confronting various levels of internal and external obstacles that stand in his way.