Genndy Tartakovsky agreed to direct on two conditions: that the film would utilize live-action puppets as well as computer animation, and that 'Brian Froud' would return to design the characters.
The story for this film came about from several conversations during production of The Dark Crystal (1982) between Jim Henson, David Odell and 'Brian Froud' about a possible sequel. When the original film proved only a modest success in theaters, Henson drifted from the idea of producing a follow-up. Years later, when the original proved a huge success on DVD and generated a large cult following, Henson and Froud's notes were re-discovered, and The Henson Company decided to move ahead with a sequel.
In an effort to re-create the magic of the original film, the filmmakers sought to locate and hire as many of the cast and crew of The Dark Crystal (1982) as possible.
The film was in development hell since it was announced in 2006 until it was cancelled and turned into a comic book instead in 2017.
Artist/Director Dave McKean was approached to direct this film.