A macroscopic rheological theory for compressible isothermal nematic liquid crystal films is developed and used to characterize the interfacial elastic, viscous. and viscoelastic material properties. The derived expression for the film stress tensor includes elastic and viscous components. The asymmetric film viscous stress tensor takes into account the nematic ordering and is given in terms of the film rate of deformation and the surface Jaumann derivative. The material function that describes the anisotropic viscoelasticity is the dynamic film tension, which includes the film tension and dilational viscosities. Viscous dissipation due to film compressibility is described by the anisotropic dilational viscosity. Three characteristic film shear viscosities are defined according to whether the nematic orientation is along the velocity direction. the velocity gradient, or the unit normal. In addition the dependence of the rheological functions on curvature and film thickness has been identified. The theological theory provides a theoretical framework to future studies of thin liquid crystal film stability and hydrodynamics. and liquid crystal foam theology.