The film is based on The Tale of the Bamboo Cutter (Taketori Monogatari), widely considered Japan's oldest surviving prose narrative, believed to have been written in the 10th century during the Heian period. The original story follows a mysterious girl discovered glowing inside a bamboo stalk by an elderly cutter. She grows into a radiant woman of unearthly beauty, rejects every suitor - including the Emperor - and ultimately ascends to return to her true home on the moon. The 2026 Netflix film Chō Kaguya-hime! reimagines this classic tale in a futuristic setting where the moon princess arrives through a glowing utility pole and is drawn into Tsukuyomi, a virtual streaming world filled with music and digital performance. The film modernises the ancient themes of belonging, longing, and impermanence within a vibrant anime and internet culture context.

The film centres on three main characters. Kaguya is the lunar girl at the heart of the story, voiced by Yuko Natsuyoshi, and she represents the moon princess of the ancient folktale reimagined in a futuristic, digital world. Iroha Sakayori is the 17-year-old high school student whose life is upended when she takes in Kaguya; she is voiced by Anna Nagase. Yachiyo, voiced by Saori Hayami, is a virtual songstress and the administrator of Tsukuyomi, the metaverse where much of the story unfolds. Yachiyo performs the film's main theme song, "Ex-Otogibanashi" ("Ex-Fairy Tale"), composed by ryo of supercell fame. Supporting characters include Fushi, a fluffy sea slug and Yachiyo's companion voiced by Rie Kugimiya.

Cosmic Princess Kaguya! was directed by Shingo Yamashita, marking his feature-length directorial debut. Yamashita is widely celebrated in the anime industry for directing the opening sequences of Jujutsu Kaisen Season 1, Chainsaw Man, and the 2022 Urusei Yatsura remake - all of which became iconic moments in recent anime history. The film was produced by Studio Colorido (known for Penguin Highway and A Whisker Away) alongside Yamashita's own newly founded Studio Chromato. Visually, the film blends Yamashita's signature fluid motion and dynamic 3D camerawork with vibrant colour palettes and large-scale animated sequences set within the virtual world of Tsukuyomi. Critics and fans have praised its animation quality as among the best in recent Japanese animation.

Tsukuyomi is the virtual streaming metaverse at the centre of the film's story - a digital realm where people can express themselves freely, support virtual idols, and live lives different from their everyday reality. Named after the Japanese moon god Tsukuyomi-no-Mikoto from Shinto mythology, the virtual world serves as a modern echo of the moon itself, the place Kaguya truly belongs. Iroha and Kaguya bond over their shared love of virtual idols and digital performance within this space. The concept reflects real-world trends around vtubers, virtual idol culture, and online streaming communities that have become enormously influential in Japan and globally. Director Yamashita has cited his deep personal connection to internet culture since the 1990s as a key inspiration for building Tsukuyomi into the narrative.

Music is central to the identity of Cosmic Princess Kaguya!, and the film features an all-star lineup of Vocaloid scene producers including ryo (supercell), kz (livetune), 40mP, HoneyWorks, Aqu3ra, and yuigot. The film's main theme, "Ex-Otogibanashi" ("Ex-Fairy Tale"), is composed by ryo of supercell - the producer behind iconic tracks like Kara no Kyoukai and the Bakemonogatari theme - and performed in-film by Saori Hayami as the character Yachiyo. Kaguya herself sings "Watashiha Watashinokotoga Suki" ("I Like Who I Am"), composed by HoneyWorks, in one of the film's most celebrated sequences. The Vocaloid connection is deeply intentional - it anchors the film within Japan's internet music culture history, connecting the ancient bamboo cutter story to the digital fan music communities that have shaped a generation of anime viewers.