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When Babette wins the lottery, she decides to hold a banquet for the Danish people who took her in. As the wine flows and the sensual food is served, we discover who Babette really is and a few secrets of the sisters.
When I was looking for a summary of the film, I noticed that the movie site IMDb says the story takes place in nineteenth-century Denmark, but a site dedicated to Babette's Feast and Dinesen says it is located in Norway.
Regardless of the setting, I recommend the movie. The film is subtitled for those of us who don't speak Danish, but it is well worth your time. Dinesen's subtle sense of humor and love for food are both well appreciated. The film won the Academy Award for Best Foreign Film in 1986.
I have not read the short story, which was first published in English for The Ladies Home Journal.
Here's the best trailer I could find in English.