The Mandalorian and Grogu's budget was just revealed and lower than expected

Star Wars' next movie, The Mandalorian and Grogu, received a generous tax credit from the state of California, making its overall budget much lower than all Disney-era Star Wars films.
Grogu and Din Djarin (Pedro Pascal) in Lucasfilm's Star Wars THE MANDALORIAN, season two, exclusively on Disney+. © 2020 Lucasfilm Ltd. & ™. All Rights Reserved.
Grogu and Din Djarin (Pedro Pascal) in Lucasfilm's Star Wars THE MANDALORIAN, season two, exclusively on Disney+. © 2020 Lucasfilm Ltd. & ™. All Rights Reserved.

The Mandalorian and Grogu wrapped filming a few months ago and is scheduled for a May 2026 release.

While much about the movie remains unknown, including its cast and plot details, its production costs have surfaced. Via Collider, according to the California Film Commission, The Mandalorian and Grogu reportedly cost $166.4 million to make and received a tax credit of roughly $21.75 million from California.

The Mando movie is the first Star Wars movie to hit theaters since The Rise of Skywalker in 2019. That cost $275 million to produce, which is lower than the $292 million spent on Andor Season 2. The most expensive Star Wars film under Disney was The Last Jedi which had a budget of $317 million. The Mandalorian and Grogu cost significantly less than all these films, and the reactions to this news are mixed.

As usual, fans have a lot to say. Some wonder why Disney has decided to be stingy with the budget for a Star Wars film. Does this show a lack of faith in the franchise or The Mandalorian's brand value? Others see this as a sign that Jon Favreau knows how to make a movie without breaking the bank. Of course, the movie could easily recover its budget within a few days of its release, guaranteeing its success.

Putting aside its budget, it's undeniable that fans waited a long time for a Star Wars film. Mando fans are anxious to see how well their favorite show translated to the big screen. No one wants to see a low-quality product, because everyone knows Disney has no shortage of money. It's better to be cautiously optimistic before an official trailer gives everyone a real idea of what this movie will be like. A low budget is hopefully not a sign that Favreau compromised on the film's quality, as he's already experienced in moviemaking.

As of now, most of the cast remains a mystery. However, Pedro Pascal will don the suit as Din Djarin with Grogu. Sigourney Weaver will play someone "in a position of authority", and assign Din Djarin to missions on the Outer Rim. Jeremy Allen White will voice Rotta the Hutt. The first teaser from the movie was shown to fans at D23 and featured Zeb Orrellios from Star Wars Rebels flying a brand-new Razor Crest.

Concept art of the new Mandalorian adventure at Galaxy's Edge revealed at SXSW suggests the return of the Razor Crest, Mando's original ship, and teases the return of Cloud City and the remains of the second Death Star.

The Mandalorian and Grogu will release in theaters on May 22, 2026.