Life is Beautiful became commercially successful. After Miramax Films released the film on 23 October 1998 in the United States, the film went on to gross $57,563,264 in North America, and $171,600,000 internationally, with a worldwide gross of $229,163,264. It is the highest grossing movie to be made in Italy, and the second highest grossing foreign film in the United States.
The film also received mostly positive reviews, with the film aggregator website Rotten Tomatoes giving the film a "Fresh" 80% rating. Despite its acclaim, actor-director Roberto Benigni received criticism for its comedic elements incorporated into the backdrop of the Holocaust. Roger Ebert gave the film 3 1/2 stars, stating, "At Cannes, it offended some left-wing critics with its use of humor in connection with the Holocaust. What may be most offensive to both wings is its sidestepping of politics in favor of simple human ingenuity. The film finds the right notes to negotiate its delicate subject matter."