James Berardinelli gave the film three and a half stars out of four, calling it "a fragment of cinematic whimsy—a genial dramatic comedy that defies both our expectations and those of the characters". Berardinelli also focused on Forsyth's abilities as a storyteller, noting that the director "finds the perfect tone for this not-quite-a-fairy-tale set in a quaint seaside Scottish village named Ferness. By injecting a little (but not too much) magical realism into the mix, Forsyth leavens his pro-environmental message to the point that those not looking for it might not be conscious of its presence." Berardinelli concluded that "Local Hero" represents "the best kind of light fare: a motion picture that offers a helping of substance to go along with an otherwise frothy and undemanding main course".