The Story of the Kelly Gang, the world's first feature film, was shot in Melbourne in 1906. Melbourne filmmakers continued to produce bushranger films until they were banned by Victorian politicians in 1912 for the perceived promotion of crime, thus contributing to the decline of one of the silent film era's most productive industries. A notable film shot and set in Melbourne during Australia's cinematic lull is On the Beach (1959). The 1970s saw the rise of the Australian New Wave and its Ozploitation offshoot, instigated by Melbourne-based productions Stork and Alvin Purple. Picnic at Hanging Rock and Mad Max, both shot in and around Melbourne, achieved worldwide acclaim. 2004 saw the construction of Melbourne's largest film and television studio complex, Docklands Studios Melbourne, which has hosted many domestic productions, as well as international features. Melbourne is also home to the headquarters of Village Roadshow Pictures, Australia's largest film production company. Famous modern day actors from Melbourne include Cate Blanchett, Rachel Griffiths, Guy Pearce, Geoffrey Rush and Eric Bana.

What was the world's first feature film?