Initially overlooked as a sleeper film, A Christmas Story was released a week before Thanksgiving 1983 to moderate success, earning about $2 million in its first weekend. Critics were severely divided on the film, with the majority of reviews on the negative side. Leonard Maltin proclaimed it a "Top screen comedy,". Vincent Canby's mostly negative New York Times review echoed the more common response. Roger Ebert suggested the film had only modest success because holiday themed films were not popular at the time. The film would go on to win two Genie Awards, for Bob Clark's screenplay and direction.

By Christmas 1983, however, the film was no longer playing at most venues, but remained in about a hundred theaters until January 1984. Gross earnings were just over $19.2 million. In the years since, due to television airings and home video release, A Christmas Story has become widely popular and is now a perennial Christmas special. Originally released by MGM, Warner Bros. (through Turner Entertainment Co.) now has ownership of the film due to Ted Turner's purchase of MGM's pre-1986 library and Time Warner's subsequent purchase of Turner Entertainment.

Over the years, the film's critical reputation has grown considerably and is considered by many to be one of the best films of 1983. Based on 43 reviews collected by Rotten Tomatoes, the film has an overall approval rating from critics of 88%, with an average score of 8.3/10. A Christmas Story was on the ballot for the American Film Institute's 100 Years... 100 Laughs list.

On December 24, 2007, AOL ranked the film their #1 Christmas movie of all time. IGN ranked the film the top holiday-themed movie of all time.

The film first aired on television on HBO during the mid-eighties and quickly attracted a growing following. In the late 1980s and early 1990s, the film began airing quietly on SuperStation WTBS and Superstation WGN. From 1988-1992, the film had a short-lived tradition of airing on the American Thanksgiving night (or the night after Thanksgiving) to open the holiday television season. In 1988, then-fledgling FOX aired the movie the night after Thanksgiving. In 1989-1990, TBS showed it Thanksgiving night, while in 1991-1992, they aired it the night after.

Turner Broadcasting, now a part of the TimeWarner umbrella of cable networks, has maintained ownership of the broadcast rights, and since the mid-1990s, airing the movie increasingly on TBS, TNT and TCM. By 1995, it was aired on those networks a combined six times over December 24-25-26, and in 1996, it was aired eight times over those three days.

Due to the increasing popularity of the film, in 1997 TNT began airing a 24-hour marathon dubbed "24 Hours of A Christmas Story," consisting of the film shown twelve consecutive times beginning at 7 or 8 p.m. on Christmas Eve and ending Christmas Day. This was in addition to various other airings earlier in the month of December. In 2004, after TNT switched to a predominantly drama format, sister network TBS, under its comedy-based "Very Funny" moniker, took over the marathon. Clark stated that in 2002, an estimated 38.4 million people tuned into the marathon at one point or another, nearly one sixth of the country. TBS reported 45.4 million viewers in 2005, and 45.5 million in 2006. In 2007, new all-time ratings records were set, with the highest single showing (8 p.m. Christmas Eve) drawing 4.4 million viewers. Viewership increased again in 2008, with 8 p.m. Christmas Eve drawing 4.5 million viewers, and 10 p.m. drawing 4.3 million, and 54.4 million total. As of 2009, the film had been shown 250 times on the Turner family of networks.

In 2007 the marathon continued, and the original tradition was revived. TNT also aired the film twice the Sunday of Thanksgiving weekend (November 25). In 2009, the 24-hour marathon continued on TBS, for the 13th overall year, starting at 8 p.m. eastern on Christmas Eve.

In 2009, the film aired on TBS during a 24 hour marathon on Christmas Eve. The first viewing at 8pm EST on Christmas Eve garnered a strong 1.6 rating and beat the major broadcast networks (NBC, ABC, CBS, and FOX).