Critical reception
The film received mixed reviews from critics. On the review aggregator website Rotten Tomatoes, 55% of 77 critics' reviews are positive. The website's consensus reads: "Barbra Streisand's spirited performance and stylish visuals notwithstanding, Funny Lady often falters under a thin script and uninspired direction."
Vincent Canby of The New York Times wrote, "As long as Miss Streisand as Fanny is singing the blues, or singing anything else, Funny Lady is superb entertainment, but the minute she stops the movie turns into a concrete soufflé. It's heavy and tasteless ... Moments meant to be dramatic are embarrassingly bad."
Roger Ebert gave the film one star out of four and called it "a big, messy flop of a movie that's almost cruel in the way it invites our memories of Funny Girl and doesn't match them." Gene Siskel of the Chicago Tribune awarded two and a half stars out of four and wrote, "It takes few chances and delivers mostly what you'd expect ... What was missing, for me at least, was a sense of surprise, of unpredictability—the sort of wit or pacing that separates a memorable musical like Cabaret from the merely tuneful."
Pauline Kael of The New Yorker wrote, "Streisand is in beautiful voice, and her singing is terrific—too terrific. It's no longer singing, it's something else—that strident overdramatization that turns a song into a big number. The audience's attention is directed away from the music and onto the star's feat in charging it with false energy. Streisand is out to knock you cold, and you get cold, all right." Kael also criticized the plot as "right out of those terrible forties movies in which couples who break up spend a lifetime thinking about each other, with encounters every five or ten years. And we get a double load of it here, with two graying ex-husbands."
Arthur D. Murphy of Variety wrote, "Barbra Streisand was outstanding as the younger Fanny Brice in Funny Girl, and in Funny Lady she's even better ... However much of a letdown the plot becomes, there's no denying the superior integration of drama, comedy, show music and personal dramatic music en route."
Charles Champlin of the Los Angeles Times wrote, "Barbra Streisand, like the picture, extends the characterization she launched so dazzlingly in Funny Girl ... What I find most impressive and likable about the performance is the softened, bittersweet maturity that Streisand lets us see in Fanny Brice. You sense that Streisand understands the star as well as she understood the impetuous young hopeful. An extraordinary presentation is the power and delight of both movies." Gary Arnold of The Washington Post called it a "lavish but uninspired" film that "seems to be celebrating stardom for stardom's sake. It's a joyless, mechanical Big Movie Musical."
Caan thought there were "too many cooks messing around", although he liked his performance.