The story begins at the vibrant Birdcage nightclub in South Beach, Miami, which is owned by the charming Armand Goldman. Armand, portrayed by Robin Williams, is a nurturing gay Jewish man in a committed relationship with Albert, the club's flamboyant drag queen star played by Nathan Lane. Their lives take an unexpected turn when Armand's son, Val, returns from college with exciting news: he plans to marry his school friend, Barbara Keeley. However, this union has a twist; Barbara has fed her conservative parents, including her father Kevin Keeley, a prominent politician, a fabricated story about Val's family, claiming that they are a traditional and upscale household, with Val's father being a cultural attaché for Greece.
Amidst this family deception, the Keeleys find themselves embroiled in their own scandal after a co-founder of Kevin's political Coalition for Moral Order dies in a compromising situation, causing chaos and a media frenzy around the family. To shield themselves from the negative press and potentially salvage their image, Louise, Kevin's wife, suggests visiting Val's family, whom they mistakenly believe to be the ideal wholesome couple.
With pressure mounting from both sides, Val, who is anxious about the situation, pleads with his father to uphold the ruse. In a moment of reluctant agreement, Armand agrees to transform their flamboyant home environment into something much more modest and inviting. They enlist the help of Agador, their over-the-top gay housekeeper, to pose as a stoic butler. The challenge intensifies when they ask Val's estranged birthmother, Katherine, for assistance. Val's request pushes Albert to his breaking point, creating a dramatic rift in their world.
The evening with the Keeleys begins with apparent success, but it soon spirals out of control as unforeseen circumstances unfold. When Katherine gets delayed in traffic, Albert reluctantly agrees to impersonate her, donning women's attire, much to the shock of Armand and Val. Surprisingly, the disguise allows Albert to charm Kevin, who is oblivious to the charade, while Louise grows increasingly suspicious of the family's underlying secrets. The awkwardness peaks when they encounter a baffling dish that includes hardboiled eggs and bizarre decorations.
The night soulfully shifts when Katherine finally arrives, leading to a revelation that shatters the Keeleys’ preconceptions. Facing an onslaught of reporters outside, the Keeleys and the Goldmans are faced with a media madhouse. In a moment of desperation, Albert proposes a daring plan to cloak the Keeleys in drag and stage a performance, a scene that showcases both humor and chaos. With a little creativity, they manage to successfully escape the Birdcage, just as the reporters close in.
The film culminates in a joyful union as Val and Barbara tie the knot in a unique interfaith ceremony combining both Jewish and Christian traditions, attended by their eclectic families. The closing moments are a testament to love and acceptance, showcasing the merging of diverse backgrounds amidst a backdrop of laughter and unconventional family dynamics.