The Golden Child (1986)
First photorealistic CGI body morphing
Video (HD 1080p)
1) Directed by Michael Ritchie, stars Eddie Murphy.
2) There is information that earliest full demonstration of morphing was at the 1982 SIGGRAPH conference, where Tom Brigham of NYIT presented a short film sequence in which a woman transformed, or "morphed", into a lynx. No video to prove this exist, if you have it, please contribute to the site
3) Weapons used in this short segment was later used in the video game Mortal Kombat 3 (1995).