Critically and commercially successful on release, it made $140 million worldwide, becoming one of the highest grossing Australian films of all time, while it was majorly praised for its acting (particularly Dev Patel and Nicole Kidman), emotional weight, visuals, cinematography and screenplay, with it receiving six Academy Award nominations including Best Picture, Best Supporting Actor (Patel), Best Supporting Actress (Kidman) and Best Adapted Screenplay.

Critical reviews for the film were generally positive with novelist and critic Salman Rushdie who normally lacks interest in films nominated for an Oscar stating that he wanted it “to win every category it’s nominated for and in most of the categories it isn’t nominated for as well” and that he wept “unstoppably” while viewing the film. Most notably, he was impressed by the “authenticity and truth and unsparing realism of its Indian first half” and that “Greg Fraser’s cinematography portrays the beauty of the country, both honestly and exquisitely”. Brian Truitt of USA Today also added that while “The finale is manipulative in every way, squeezing out the emotions of the audience… (the film’s) well-plotted narrative and thoughtful characters suck you in so much that the journey there is totally worth it.”

Today, it stands on Rotten Tomatoes at 84% with its critical consensus stating that “Lion’s undeniably uplifting story and talented cast make it a moving journey that transcends the typical clichés of its genre.”