Ali (CHRISTINA AGUILERA) has had enough of Iowa and moves to Los Angeles where she hopes to find a job singing. After repeatedly being turned down, she stumbles into a club called Burlesque and is instantly mesmerized by the choreographed and somewhat risqué dance numbers to old classic tunes performed by the likes of Nikki (KRISTEN BELL), Georgia (JULIANNE HOUGH) and Coco (CHELSEA TRAILLE), among others.
With a tip from bartender Jack (CAM GIGANDET), Ali goes in to see the club's owner, Tess (CHER), and manager, Sean (STANLEY TUCCI), but they're preoccupied not only with the current show, but also the club's finances. Those dire straits are also on the mind of Tess' ex-husband, Vince (PETER GALLAGHER), who's still co-owner of Burlesque and wants to sell to local real estate developer Marcus (ERIC DANE).
Tess wants no part of that, but doesn't see any way of making enough money to pay off their bills. That is, until she hears Ali belt out a song, a development that also draws Marcus' interest, not only due to the young woman's talent, but also because she's quite attractive. Most everyone sees Marcus as bad news for her, including Jack who's allowed her to rent out part of his apartment while his fiancé continues to be away working on a play.
With Nikki jealous of Ali stealing her limelight, and Tess trying to figure out how best to capitalize on the young woman's talents, Ali starts to become a big sensation, but must decide who and what's best for her and her career.