We present an isothermal fluctuating nonlinear hydrodynamic theory of crystallization in molecular liquids. A dynamic coarse-graining technique is used to derive the velocity field, a phenomenology which allows a direct coupling between the free energy functional of the classical density functional theory and the Navier-Stokes equation. In contrast to the Ginzburg-Landau type amplitude theories, the dynamic response to elastic deformations is described by parameter-free kinetic equations. Employing our approach to the free energy functional of the phase-field crystal model, we recover the classical spectrum for the phonons and the steady-state growth fronts. The capillary wave spectrum of the equilibrium crystal-liquid interface is in good qualitative agreement with the molecular dynamics simulations.