Ali Rose (Christina Aguilera), whose mother passed when she was seven, moves to Los Angeles after she quits her bar job when her boss refuses to pay her. Once in L.A., she tries and fails at every audition she does until one night, she finds herself unknowingly in a burlesque club when she hears the music on the street. She finds Tess (Cher) and the dancers performing �Welcome to Burlesque� and decides to pursue a career on stage once she meets Jack (Cam Gigandet) at the club's bar. Jack refers her to Tess for an audition, but she is instantly rejected and ushered out by Sean (Stanley Tucci). Instead of leaving, Ali begins serving customers at the club as a waitress.

When Georgia (Julianne Hough) becomes pregnant, auditions are held to replace her. Ali begins her audition when everyone leaves, and after performing "Wagon Wheel Watusi", persuades Tess to allow her to become one of the club's dancers, much to the annoyance of Nikki (Kristen Bell), the lead performer and a drunk. One day Ali has to replace Nikki on stage because Nikki is too drunk to perform. Nikki sabotages the performance by turning off the music that the dancers usually lip sync to, but before the curtain is dropped down, Ali impresses everyone with her amazing singing skills. Tess immediately decides to have Ali become the main star of a whole new show at the club. It becomes increasingly popular and Ali enjoys her newfound stardom while Nikki fumes in the background. Despite the club's growing success, Tess is still unable to pay the bank the money that she owes.

One night after the club closes, Tess, worried with the club's economic prospects, sings "You Haven't Seen the Last of Me". A very jealous Nikki shows up drunk and picks a fight with her. She feels that Tess has rejected their long-term friendship for Ali. Tess, who has grown frustrated with Nikki, defends Ali and questions her gratitude for the help she has received from her during her many drunken binges. Angered, Nikki quits on the spot (before falsely claiming that she slept with Vince (Peter Gallagher) after his and Tess's honeymoon), and the altercation ends when Tess angrily retaliates by smashing the passenger side window on Nikki's convertible with a crowbar.