Disney's Encanto Isn't Getting a Sequel Anytime Soon, Producer Says

Disney Animation and Pixar are actively returning to major properties including but not limited to Frozen, Zootopia, The Incredibles, and Coco, and in the midst of that, one absence has especially become noticeable. During Yvett Merino's exclusive interview with The Direct, she revealed that the animated 2021 Disney film that became much bigger than its theatrical gross suggests won't be continuing anymore, but there's a catch to it.

The film went on to rake in only about $261.3 million worldwide, including roughly $96.1 million domestically. Under normal circumstances, those numbers might explain why Disney wasn't rushing toward a sequel. But the movie arrived during the pandemic-era theatrical market and then became dramatically bigger after reaching Disney+. And because it came during the pandemic, audiences went on to watch approximately 27.4 billion minutes of the film during 2022, which also made it the year's most streamed film in the U.S.

The title in crosshairs is Encanto, and Merino, who is now also a Walt Disney Animation Studios creative executive, in reply to being asked whether there were plans for greenlighting and developing Encanto 2, replied: "No, but I'm always here for it." So as of October 22, 2026, according to someone who produced the original film, there have apparently been no discussions about greenlighting an Encanto sequel. At the same time, it doesn't necessarily mean that the franchise is dead.

Disney Is Investing Heavily in 'Encanto' Outside of Movie Theaters

Merino specifically brought a project up while answering the sequel question for Encanto. There's reportedly a major Encanto attraction being built for the new Tropical Americas land at Disney's Animal Kingdom in Walt Disney World. Disney says guests will actually enter the Madrigals' Casita, with the attraction centered on Antonio and his magical gift. Merino bringing that up is telling because it says the franchise is alive, the brand is valuable, and Disney is probably choosing to make a strategic decision and focusing on other stronger bets including but not limited to The Incredibles 3 and Frozen 3, arriving on November 24, 2027, for now.

Encanto's exposure seems to be contained, considering the fact that it didn't do too well at the box office and its streaming come-up primarily got linked to the lockdowns and pandemic. But given Merino's response that she's always here for it, the franchise certainly isn't dying.