Director Frank Oz got permission from George Lucas to use the Star Wars character Darth Vader in the film. Oz provided the voice for another character, Yoda, in the Star Wars films.
The action figures that Omri places in the cupboard include Darth Vader from Star Wars: Episode IV - A New Hope (1977), the T-Rex from Jurassic Park (1993), a Ferengi merchant and a Cardassian soldier from Star Trek: The Next Generation (1987)/Star Trek: Deep Space Nine (1993), G.I. Joe, and the title character from RoboCop (1987). Both Darth Vader and Robocop are humans rebuilt as cyborgs.
Steve Coogan plays a small soldier figure in this film. He will later appear in Night at the Museum (2006) as a small soldier figure that also magically comes to life.
On the DVD commentary, Frank Oz stated he was reluctant to direct this movie, as he doesn't think he's a children's director.