James Bond director Lee Tamahori was arrested for allegedly approaching an undercover police officer and offering to perform a sex act for money.
Lee Tamahori directed Die Another Day
Los Angeles city attorney's office said Mr Tamahori was dressed in a black wig and dress when arrested in Hollywood.
He was charged with soliciting an act of prostitution and loitering with the intent to commit prostitution.
City spokesman Frank Mateljan said police had been carrying out a prostitution sting in the area.
Freed on bail
"Mr Tamahori was arrested for soliciting. I can confirm he was dressed in women's clothing at the time of the arrest," said officer Jason Lee of the Los Angeles Police Department.
New Zealand-born Mr Tamahori, 55, is free on bail and is due to appear in court on 24 February.
The misdemeanour charges carry a maximum sentence of six months jail and a $1,000 (£562) fine.
He directed the last James Bond film Die Another Day and other credits include the sequel XXX: State of the Union, Once Were Warriors and Mulholland Falls.