After years away from cinemas, Star Wars is finally returning to theaters—but this comeback looks noticeably leaner.
Lucasfilm’s The Mandalorian and Grogu, directed by Jon Favreau, will mark the first Star Wars theatrical release since 2019’s Star Wars: Episode IX–The Rise of Skywalker when it opens on May 22, 2026. Pedro Pascal will reprise his role as Din Djarin alongside Grogu, Sigourney Weaver as New Republic leader Ward, and Jeremy Allen White as Rotta the Hutt.
According to Collider, “The Mandalorian and Grogu appears to have an overall production budget of $166.4 million and was the recipient of a bountiful tax credit from the state of California to the tune of $21.75 million, which certainly helped when it came to the bean counting at the end of the day.” The figures were disclosed by the California Film Commission.
That number makes The Mandalorian and Grogu one of the most cost-efficient Star Wars films in the Disney era—less than half the reported $300 million budget of The Last Jedi and a fraction of the $600 million cost of The Rise of Skywalker. The use of StageCraft technology—known as “The Volume”—continues to be a major reason for those savings, allowing filmmakers to create vast worlds with fewer physical sets and location shoots.
Despite a smaller price tag, the movie is positioned as a key piece of Disney’s evolving Star Wars strategy. It’s the first theatrical story set in the so-called “New Republic” era and will bridge the worlds of streaming and cinema that have defined Lucasfilm’s last decade.
“The evil Empire has fallen, and Imperial warlords remain scattered throughout the galaxy,” the synopsis reads on StarWars.com. “As the fledgling New Republic works to protect everything the Rebellion fought for, they have enlisted the help of legendary Mandalorian bounty hunter Din Djarin (Pedro Pascal) and his young apprentice Grogu (as himself).”
Meanwhile, budget tightening is also hitting the small screen. At Comic-Con Scotland, Rosario Dawson reportedly revealed that Ahsoka Season 2 will film with a smaller budget than its first season, per The Direct. That’s a first for a live-action Star Wars Disney+ series, as most—including The Mandalorian and Andor—have traditionally expanded their budgets with each new installment.
Season 1 of Ahsoka is believed to have cost over $100 million across eight episodes, making the reduction notable. Still, Dawson says the new season plans to “go bigger” narratively even with fewer resources.
With two high-profile Star Wars projects moving forward on leaner budgets, Lucasfilm may be signaling a long-term recalibration—aiming for smarter, story-driven productions that don’t depend on the blockbuster-scale spending of the past.
The Mandalorian and Grogu opens in theaters May 22, 2026.
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