The Danish Film Institute is a government institution under the Ministry of Culture and operates in accordance with the Film Act of 1997.

Core tasks involve funding the production and development of films and their promotion and dissemination; preserving and providing access to the national film heritage; and providing classifications and advice on films and moving images.

Through its funding schemes, the DFI works to promote innovative cinema and talent development. Grants are also awarded for digital games. As a cornerstone of Danish film policy, at least 25% of the funding is earmarked for children and youth.

The DFI is located in Copenhagen, with film archives in Glostrup and Hillerød nearby. The building in Copenhagen houses a number of audience-oriented film activities, including the Cinematheque cinemas, a library, the FILM-X film studio, a café and the SULT restaurant.

The DFI was established in its current form in 1997 by merging three existing government institutions: the Danish Film Institute, Statens Filmcentral and the Danish Film Museum.