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The film is "Legends", so no, as it doesn't belong to the body of Lucasflim-owned work designated as canon by the Lucasfilm Story Group. (Prior to the change in designation, the particular work was "continuity canon" which was regarded as less canon than the Lucasfilm-made, live-action, ordinal Star Wars films but canon nonetheless.) However, the film has not been retconned, so there hasn't been a change in continuity with other Lucasfilm "Star Wars" works, whether canon or "Legends".
This has been the subject of some debate. According to Lucasfilm it takes place three years after the Battle of Yavin which was in Star Wars: Episode IV - A New Hope, while Star Wars: Episode V - The Empire Strikes Back also takes place three years after the Battle of Yavin, and Star Wars: Episode VI - Return of the Jedi is set four years after the Battle of Yavin, so chronologically it takes place around the same time as The Empire Strikes Back. It has been pointed out, though, that the Ewoks in this movie speak a real human language (English or whatever may be dubbed over, the viewing audience's language), which they didn't in Return of the Jedi, thus bringing Lucaslim's claim into question. Most likely this is due to an error or outright oversight in the production and editing process behind the movie, as it could be that the Towani siblings are able to communicate with the Ewoks due to both groups speaking the Ewok language or some other language (besides Basic, i.e. English or some other non-fictive language) that they both understand, but the telling of their story is inherently translated for the audience who'd mainly be children who've not obtained a reading proficiency that would make them comfortable observing a feature film that is entirely close-captioned, the only alternative to which would have been a format in which the human characters always repeat in translation whatever an Ewok utters like how C-3PO does for R2-D2.
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