While Disney+ was a success when it launched in 2019, it didn't take the House of Mouse long to reach a point where spending hundreds of millions of dollars on content wasn't paying off when it came to attracting new, paying subscribers.
Since taking over as Disney CEO from Bob Chapek, Bob Iger has concluded that there's more money to be made in theaters and, so far, he's been proven correct.
The Moana TV series was transformed into a movie that grossed over $1 billion last year and the highly anticipated Lilo & Stitch has gone from being a streaming title to a theatrical release. As for The Mandalorian season 4, that's now The Mandalorian and Grogu.
The movie was filmed in California and, like the TV series, made use of the Volume to cut down on pricey location shoots.
According to the California Film Commission (via SFFGazette.com), The Mandalorian and Grogu's production budget was only $166.4 million; it also received tax credits of $21.75 million. As a result, it has the most modest budget of any Disney-era Star Wars movie.
The cheapest of those before now was Rogue One: A Star Wars Story with $200 million, while Star Wars: The Last Jedi cost a reported $317 million.
The Mandalorian season 1 is said to have had a $120 million budget (roughly $150 million with inflation), meaning the conversion from an 8-episode TV series to big screen release hasn't ultimately cost Disney and Lucasfilm too much extra.
The studio is banking on The Mandalorian and Grogu being a hit and a low budget will go a long way in helping with that. For fans, the hope is this won't feel like an extended episode and is instead a suitably epic big screen story told set in a Galaxy Far, Far Away.
Few details have been revealed but something could be shared at this April's Star Wars Celebration in Japan. A brief teaser is possible, though it's far too soon for a full-blown trailer and even then, chances are it won't be released online.
"I have loved telling stories set in the rich world that George Lucas created," writer and director Jon Favreau previously said of helming his first Star Wars movie. "The prospect of bringing the Mandalorian and his apprentice Grogu to the big screen is extremely exciting."
Lucasfilm President Kathleen Kennedy added, "Jon Favreau and Dave Filoni have ushered into Star Wars two new and beloved characters, and this new story is a perfect fit for the big screen."
Starring Pedro Pascal, Sigourney Weaver, Jeremy Allen White, and Jonny Coyne, The Mandalorian & Grogu is directed by Favreau and produced by him, Kennedy, Dave Filoni, and Ian Bryce.
This exciting new adventure in the Mandalorian and Grogu's journey is currently in post-production and arrives in theaters on May 22, 2026.