The film was originally scheduled for a theatrical release during the 1996 holiday season. However, because Disney was having success with animated direct to video films, the studio chose this film as the first live action direct to video movie.
When Gordon is pretending to be God in order to get the kids' attention, he asks Ricky King "How come I know you live on Sycamore?". Sycamore is the name of the street that the Szalinski family lived on in Honey, I Shrunk the Kids (1989), possibly implying that the family still lives in the same area in this film. However, the second film in the series, Honey I Blew Up the Kid (1992), showed that the family had moved to the suburbs of Las Vegas, Nevada.