The official source said the film "promotes homosexuality and other Western deviances" and that it "does not comply with Algeria's religious and cultural beliefs".
Starring Margot Robbie and Ryan Gosling as Barbie and Ken, the movie sends Mattel Inc's doll on an adventure into the real world. The film has topped $1bn in box office ticket sales worldwide since its July 21 debut.
Lebanon and Kuwait have both also banned the film.
Algeria's Culture Ministry supervises the contents of films projected in cinemas and can stop them being shown.
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