This was the first Dizzy game that was not fully designed and coded by the Oliver Twins, the creators of Dizzy. After "Fantasy World Dizzy" they had started working more closely with Codemasters, developing games for the American market where the Nintendo Entertainment System (NES) was quickly capturing a large audience. In order to continue the Dizzy series, which remained popular in Codemasters' home market, the Twins had to bring in others to do the majority of the design and coding. This gave them time to concentrate on their other projects. The coding of "Magicland Dizzy" was contracted out to Big Red Software.