Film Fund Luxembourg was first established in 1990 and then restructured in 1999. It exists primarily to promote and foster an environment in which the country's film production industry can develop and flourish.

The Fund, an official body supervised by the minister responsible for the audiovisual sector and the minister responsible for culture, implements the overall policy of the government's support for audiovisual productions. Thus it manages the program through which the Luxembourg government provides financial support to audiovisual productions.

The Fund co-operates closely with the audiovisual industry representatives, like the Luxembourg Film Academy, Luxembourg Producers Association (ULPA), the writer's and director's association (LARS) and the association representing all the local film technicians (ALTA) in promoting the sector's development. The Fund also assists supervisory Ministers in areas such as the drafting of regulations and legislation and developing international coproduction agreements, compiles statistics relating to this sector, determines the award of "Luxembourg nationality" for audiovisual works and maintains a national register of productions.

Film Fund Luxembourg represents Luxembourg in all european and international audiovisual initiatives, like Eurimages, the pan-European coproduction fund, Creative Europe - Media, the support program of the European Commission with the aim of providing a framework for a Luxembourg audiovisual industry in full expansion.

Since 2003, the Fund has overseen, every two years, the organization of the Luxembourg Film Awards (Lëtzebuerger Filmpräis), which rewards the country's best film contributions. Since 2014, the Film awards are organized in close collaboration with the Luxembourg Film Academy (d'Filmakademie).