Fancy Dance features a Two-Spirit character whose identity is depicted with dignity and complexity. The film integrates this portrayal respectfully into the narrative, presenting it as a natural aspect of the character and her Indigenous community. The overall depiction is affirming, contributing to a story focused on family, resilience, and the search for a missing loved one.

The film centers on a non-traditional family unit led by a queer guardian, showcasing the resilience of alternative family structures and fluid caregiving roles. It emphasizes the strength of extended family bonds and cultural heritage in navigating loss and forming new family dynamics.