Cabaret is a form of theatrical entertainment featuring music song, dance, recitation, or drama. The performance venue might be a pub, casino, hotel, restaurant, or nightclub with a stage for performances. The audience, often dining or drinking, does not typically dance but usually sits at tables. Performances are usually introduced by a master of ceremonies (M.C.). The entertainment, as performed by an ensemble of actors and according to its European origins, is often (but not always) oriented towards adult audiences and of a clearly underground nature. In the United States, striptease, burlesque, drag shows, or a solo vocalist with a pianist, as well as the venues which offer this entertainment, are often advertised as cabarets.

The term originally came from Picard language or Walloon language words camberete or cambret for a small room (12th century). The first printed use of the word kaberet is found in a document from 1275 in Tournai. The term was used from the 13th century in Middle Dutch to mean an inexpensive inn or restaurant (caberet, cabret).

The word cambret is itself probably derived from an earlier form of chambrette or "little room", or from the Norman French chamber meaning "tavern", itself derived from the Late Latin word camera meaning an arched roof.

Cabarets had appeared in Paris by at least the late 15th century. They were distinguished from taverns because they served food as well as wine, the table was covered with a cloth, and the price was charged by the plate, not the mug. They were not particularly associated with entertainment even if musicians sometimes performed in both. Early on, cabarets were considered better than taverns; by the end of the sixteenth century, they were the preferred place to dine out. In the 17th century, a clearer distinction emerged when taverns were limited to selling wine, and later to serving roast meats.

Cabarets were frequently used as meeting places for writers, actors, friends and artists. Writers such as La Fontaine, Moliere and Jean Racine were known to frequent a cabaret called the Mouton Blanc on rue du Vieux-Colombier, and later the Croix de Lorraine on the modern rue Bourg-Tibourg. In 1773, French poets, painters, musicians and writers began to meet in a cabaret called Le Caveau on rue de Buci, where they composed and sang songs. The Caveau continued until 1816, when it was forced to close because its clients wrote songs mocking the royal government.

In the 18th century, the café-concert or café-chantant appeared, which offered food along with music, singers, or magicians. The most famous was the Cafe des Aveugles in the cellars of the Palais-Royal, which had a small orchestra of blind musicians. In the early 19th century, many cafés-chantants appeared around the city; the most famous were the Café des Ambassadeurs (1843) on the Champs-Élysées and the Eldorado (1858) on boulevard Strasbourg. By 1900, there were more than 150 cafés-chantants in Paris.

The first cabaret in the modern sense was Le Chat Noir in the bohemian neighborhood of Montmartre, created in 1881 by Rodolphe Salis, a theatrical agent and entrepreneur. It combined music and other entertainment with political commentary and satire. The Chat Noir brought together the wealthy and famous of Paris with the bohemians and artists of Montmartre and the Pigalle. Its clientele "was a mixture of writers and painters, of journalists and students, of employees and high-livers, as well as models, prostitutes and true grand dames searching for exotic experiences." The host was Salis himself, calling himself a gentleman-cabaretier; he began each show with a monologue mocking the wealthy, ridiculing the deputies of the National Assembly, and making jokes about the events of the day. The cabaret was too small for the crowds trying to get in; at midnight on June 10, 1885, Salis and his customers moved down the street to a larger new club at 12 rue de Laval, which had a decor described as "A sort of Beirut with Chinese influences." The composer Eric Satie, after finishing his studies at the Conservatory, earned his living playing the piano at the Chat Noir.

By 1896, there were 56 cabarets and cafes with music in Paris, along with a dozen music halls. The cabarets did not have a high reputation; one critic wrote in 1897 that "they sell drinks which are worth fifteen centimes along with verses which, for the most part, are worth nothing." The traditional cabarets, with monologues and songs and little decor, were replaced by more specialized venues; some, like the Boite a Fursy (1899), specialized in current events, politics and satire. Some were purely theatrical, producing short scenes of plays. Some focused on the macabre or erotic. The Caberet de la fin du Monde had servers dressed as Greek and Roman gods and presented living tableaus that were between erotic and pornographic.