Pope Leo has held an audience with Hollywood stars, urging actors and directors including Cate Blanchett, Viggo Mortensen and Monica Bellucci to continue their work as "pilgrims of the imagination", helping to "bring hope".

The celebrity meeting was a sprinkling of star dust for a still relatively new pope and a way for the Catholic Church to engage more with the world beyond.

It was also a strong show of support from Leo XIV for the global film industry, as he spoke out against the "troubling decline" in cinema-going.

Hailed by director Spike Lee as a "great day", the gathering was the first of its kind in the Vatican.

Beneath the magnificent frescoes of the Clementine Hall, Pope Leo spoke in Italian to praise the power of cinema to entertain and to educate – and for its "capacity to amaze".

But he urged filmmakers not to shy away from what he called "the world's wounds".

"Violence, poverty, exile, loneliness, addiction and forgotten wars are issues that need to be acknowledged and narrated," the Pope said. "Good cinema does not exploit pain; it recognizes and explores it. This is what all the great directors have done."

Six months since a conclave of cardinals elected the first North American to the Papacy, some Catholics feel that Leo has been slow to stamp his own mark on the role.

His predecessor, Francis, was a charismatic Argentinian known for his off-the-cuff comments and dramatic gestures. Leo's style is far quieter, so this star-studded engagement is a new look.

It's not clear how the cast list was drawn up, although none of the directors in the hall – who came from all over the world – made it onto the Pope's own top film list.

This week, the Vatican revealed that his favourite four watches of all time included the 1960s nun-themed classic The Sound of Music, It's a Wonderful Life and Italian Roberto Benigni's multi award-winning Life is Beautiful.

Among those who did join today's A-list audience were Mortensen, Chris Pine and filmmaker Gus Van Sant – of Milk and Good Will Hunting fame. The large Italian contingent included Gianni Amelio and Cinema Paradiso creator, Giuseppe Tornatore.

At a time of immense pressure on film, not long after a major Hollywood strike and with funding strains here in Italy, the Pope spoke in defence of the industry.

He was applauded loudly when he talked of the "quiet dedication" of all those behind the scenes with vital roles.

He also warned against the closure of cinemas which he characterised as the "beating heart of communities".

"More than a few people are saying that the art of cinema and the cinematic experience are in danger. I urge institutions not to give up, but to cooperate in affirming the social and cultural value of this activity," the Pope said.

After a fifteen-minute speech and a blessing he then received each audience member in turn, led by Blanchett.

"He really urged us to go back into our day jobs and inspire people," the Australian-born star told reporters.

One of many who came bearing gifts, the actress – who works with the UN refugee agency, UNHCR – placed a woven bracelet in the Pope's hand. "It was a bracelet I wear in solidarity with people who are displaced," she explained later.

Lee handed the Chicago-born Pope a New York Knicks shirt printed with the number 14 and the words Pope Leo.