The movie was considered to be around 80% finished when Pixar merged with Disney. Pixar's John Lasseter demanded significant changes to the plot of the movie. The original version was set in a London where Never Land had disappeared and all children had lost their imagination. The movie would have ended with the fairies going to see a band called "The Pixies Chicks".
As a marketing tie-in with Southwest Airlines, a Boeing 737 was decorated and named "Tinker Bell One". Flight attendants wore fairy wings and awarded prizes to passengers in a Tinker Bell trivia competition.
Budget overruns led to the removal of Sharon Morrill, the then-head of DisneyToons direct-to-DVD division. By that stage, the film had undergone nearly two dozen script rewrites and a dozen directors. Pixar executives John Lasseter and Ed Catmull assumed control of Walt Disney Feature Animation after Disney purchased Pixar in 2006 and stepped in to help salvage the project even though DisneyToons didn't fall under their purview. Lasseter is reported to have said that the film was "virtually unwatchable" and that it would hurt the Disney brand if released in its present format. Morrill was moved to "special projects" and the whole debacle raised serious questions within the company of having a direct-to-DVD division.