The film was the idea of producer Paul Jacobson, who worked in video production and wanted to move into features. He hired writer Glenville Mareth to develop the idea and Nicholas Webster to direct and made the film through his own Jalor Productions. Jacobson called the film a "yuletide science fiction fantasy" and said he made it because of a perceived gap in the market. "Except for the Disneys, there's very little in film houses that children recognize as their own".