Krank, a highly intelligent but malicious being created by a vanished scientist, is unable to dream, which causes him to age prematurely. At his lair on an abandoned oil rig, he uses a dream-extracting machine to steal dreams from children. The children are kidnapped for him from a nearby port city by a cyborg cult called the Cyclops, who in exchange he supplies with mechanical eyes and ears. Among the kidnapped is Denree, the adopted little brother of carnival strongman One. After the carnival manager is stabbed by a mugger, One is hired by a criminal gang of orphans to help them steal a safe. The theft is successful, but the safe is lost in the harbor when One is distracted by seeing Denree's kidnappers. He, together with one of the orphans, a little girl called Miette, follows the Cyclops and infiltrates their headquarters, but they are captured and sentenced to execution. Meanwhile, the Octopus orders circus performer Marcello to return One to them. He uses his trained fleas, which inject a poison capsule that causes mindless aggression, to turn the Cyclops guards against each other. While Marcello is rescuing One, Miette falls into the harbor and sinks, seemingly drowned, but an amnesiac diver living beneath the harbor rescues her. Miette leaves the diver's lair to find One and Marcello both drowning their sorrows in a bar. Upon seeing Miette alive the remorseful Marcello lets One leave with her. However the Octopus confronts them on the pier, and uses Marcello's stolen fleas to turn One against Miette. A spectacular chain of events triggered by one of Miette's tears leads to a ship crashing into the pier before One can throttle her. Marcello arrives and sets the fleas on the Octopus, allowing One and Miette to escape to continue searching for Denree. Back at Krank's oil rig, Irvin tricks one of the clones into releasing a plea for help in the form of a bottled dream telling the story of what is going on on the oil rig. It reaches One, Miette, and the diver, and the latter remembers that he was the scientist who made them, and that the oil rig was his laboratory before Krank and Martha attacked him and pushed him off it to take it for themselves, leaving him for dead in the water. They all converge on the rig; the diver to destroy it and the duo to rescue Denree. Miette is almost killed by Martha, but the diver harpoons her. She then finds Denree asleep in Krank's dream-extracting machine, and Irvin tells her that to release him she must use the machine to enter the dream herself. In the dream world, she meets Krank and makes a deal with him to replace the boy as the source of the dream; Krank fears a trap but plays along, believing himself to be in control. Miette then uses her imagination to control the dream and turn it into an infinite loop, destroying Krank's mind. One and Miette rescue all the children, while the now-deranged diver loads the rig with dynamite and straps himself to one of its legs. The diver regains his senses as everyone is rowing away and pleads with his remaining creations to come back to rescue him, but a seabird lands on the handle of the blasting machine, blowing up him and the rig.
The film holds a 79% approval rating on Rotten Tomatoes based on 56 reviews, with an average rating of 6.91/10. The website's critical consensus reads, "Not all of its many intriguing ideas are developed, but The City of Lost Children is an engrossing, disturbing, profoundly memorable experience." It also holds a weighted average score of 73 on Metacritic, based on 16 critics, indicating "generally favorable reviews". Roger Ebert gave the film 3 stars out of a possible 4, writing that the film's design and visual effects deserved the highest possible praise but the story was sometimes confusing: "I would be lying if I said I understood the plot."
Interpretation
According to authors Jen Webb and Tony Schirato, the dual nature of capitalism constitutes a main source of tension in the film: According to author Donna Wilkerson-Barker, these elusive aspects of humanity are presented within the film for various characters to identify with. For example, the relationship between One and Denrée represents, for Miette, a family of authenticity. Prepared to sacrifice her life in order to become a part of their family, Miette helps One to save Denrée from Krank's manipulative environment. In another example, Irvin the brain plays his part in overturning the same environment in order to liberate his "family" of clones. In the end, two boats filled with these two different families row towards their futures: In one boat, a technologically produced family of Irvin and the clones; In the other, a rationally envisioned family containing Miette, One, and the abducted children. This leaves the audience to question precisely what the future will hold for these two differing visions of humanity. As The City of Lost Children "proceeds in full awareness that the past to which it is committed never really existed," the film has been classified as an example of the steampunk genre.