Around the release of the film, Disney executive David Hoberman was quoted, "I hope Nightmare goes out and makes a fortune. If it does, great. If it doesn't, that doesn't negate the validity of the process. The budget was less than any Disney blockbuster so it doesn't have to earn Aladdin-sized grosses to satisfy us."[10] The film earned $50 million in the United States on its first theatrical run. The Nightmare Before Christmas made a further $8.7 million in box office gross in its 2006 reissue. The 2007 and 2008 reissues earned $14.5 million and $1.1 million, respectively, increasing the film's total box office gross to $75 million.

The film initially received positive reviews from critics; it has since gone on to receive widespread critical acclaim. On Rotten Tomatoes, the film holds a rating of 94%, based on 88 reviews, with an average rating of 8.2/10. The site's consensus reads, "The Nightmare Before Christmas is a stunningly original and visually delightful work of stop-motion animation."[43] On Metacritic the film has a score of 77 out of 100, based on 16 critics, indicating "generally favorable reviews". Roger Ebert gave a highly positive review for Nightmare. Ebert believed the film's visual effects were as revolutionary as Star Wars, taking into account that Nightmare was "filled with imagination that carries us into a new world". Peter Travers of Rolling Stone called it a restoration of "originality and daring to the Halloween genre. This dazzling mix of fun and fright also explodes the notion that animation is kid stuff. It's 74 minutes of timeless movie magic."James Berardinelli stated "The Nightmare Before Christmas has something to offer just about everyone. For the kids, it's a fantasy celebrating two holidays. For the adults, it's an opportunity to experience some light entertainment while marveling at how adept Hollywood has become at these techniques. There are songs, laughs, and a little romance. In short, The Nightmare Before Christmas does what it intends to: entertain." Desson Thomson of The Washington Post enjoyed stylistic features in common with Oscar Wilde, German Expressionism, the Brothers Grimm and The Cabinet of Dr. Caligari. Michael A. Morrison discusses the influence of Dr. Seuss' How the Grinch Stole Christmas! on the film, writing that Jack parallels the Grinch and Zero parallels Max, the Grinch's dog. Philip Nel writes that the film "challenges the wisdom of adults through its trickster characters", contrasting Jack as a "good trickster" with Oogie Boogie, whom he also compares with Dr. Seuss' Dr. Terwilliker as a bad trickster. Entertainment Weekly reports that fan reception of these characters borders on obsession, profiling Laurie and Myk Rudnick, a couple whose "degree of obsession with the film is so great that they named their son after the real-life person that a character in the film is based on." This enthusiasm for the characters has also been profiled as having spread beyond North America to Japan. Yvonne Tasker notes "the complex characterization seen in The Nightmare Before Christmas".

The film was nominated for both the Academy Award for Best Visual Effects and the Hugo Award for Best Dramatic Presentation. Nightmare won the Saturn Award for Best Fantasy Film, while Elfman won Best Music. Selick and the animators were also nominated for their work. Elfman was nominated for the Golden Globe Award for Best Original Score. Most recently, the film ranked #1 on Rotten Tomatoes' "Top 25 Best Christmas Movies" list.