Film functional magnetic resonance imaging (fMRI) has gained tremendous popularity in many areas of neuroscience. However, affective neuroscience remains somewhat behind in embracing this approach, even though films lend themselves to study how brain function gives rise to complex, dynamic and multivariate emotions. Here, we discuss the unique capabilities of film fMRI for emotion research, while providing a general guide of conducting such research. We first give a brief overview of emotion theories as these inform important design choices. Next, we discuss films as experimental paradigms for emotion elicitation and address the process of annotating them. We then situate film fMRI in the context of other fMRI approaches, and present an overview of results from extant studies so far with regard to advantages of film fMRI. We also give an overview of state-of-the-art analysis techniques including methods that probe neurodynamics. Finally, we convey limitations of using film fMRI to study emotion. In sum, this review offers a practitioners' guide to the emerging field of film fMRI and underscores how it can advance affective neuroscience.