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Basically, a guy called Billy Peltzer picks up a new pet called Gizmo and after breaking a few rules he shouldn't have, ends up spawning a bunch of ugly creatures called Gremlins who proceed to terrorize the town.
The film is a success because it succeeds at producing both a comedy and a horror in one go which can't be easy. Most comedy horror films are a joke (such as some of the Ghoulies films which emulated the Gremlins series) but Gremlins is both funny and scary. It's funny seeing the Gremlins cause mischief but it's also scary throughout-they're not exactly pretty creatures and are quite scary as well.
Gremlins deserves a look from anyone interested in seeing a good comedy horror movie.