What started more than 20 years ago as a modest retail shop on an uncrowded, decidedly untrendy stretch of West Third Street has become the latest celeb-infested spot to undergo a retro blast.

Victorian-era dresses and classic funky jewelry are the order of the day here. A few blocks down is this flagship's second store, which focuses on more modern pieces, but don't be fooled: The original shop is the hipster haven. There's a wide selection of flapper dresses, corset gowns, baby doll shoes and hats from different eras to lose one's head over. All the clothes are cleaned and repaired, making the store pricier but decidedly less musty—and still much more reasonable than couture places like Paperbag Princess or Decades. Best known for its cocktail dresses, Polkadots and Moonbeams is said to be frequented by Demi Moore and Drew Barrymore, and Julia Roberts has been photographed holding the signature polka-dotted shopping bag. The store feels like a big dress-up closet with pink-stained wood floors, white Victorian molding and antique-looking wardrobes designed by owner Wendy Freedman's architect husband. The big paper flowers that sit atop the shelving sums up the store's personality: friendly, bright and bold.