The town that serves as the setting for the film "The Nightmare Before Christmas" is called "Halloween Town." Halloween Town is a fictional location in the movie, where various iconic characters like Jack Skellington, Sally, and Oogie Boogie reside. The film, directed by Henry Selick and produced by Tim Burton, tells the story of Jack Skellington, the Pumpkin King of Halloween Town, as he stumbles upon Christmas Town and becomes captivated by the idea of Christmas, leading to a unique blend of Halloween and Christmas elements throughout the film.