The budget for "The Mandalorian & Grogu" was $166.4 million, including a $21.75 million tax credit provided by the state of California. This data is provided in a report by the California Film Commission. Even without considering the benefits, production costs remain below $200 million, making the film the most budget-friendly film in the Star Wars universe released under Disney.
For comparison, "Rogue One" cost more than $200 million, and the films of the sequel trilogy cost $245 million ("The Force Awakens"), $317 million ("The Last Jedi"), and $275 million ("The Rise of Skywalker"). The production budget for "Solo: A Star Wars Story" exceeded $275 million due to the change of directors and large-scale reshoots, not including marketing.
The reduction in costs for "The Mandalorian & Grogu" is partly explained by the use of StageCraft technology — filming against the backdrop of volumetric LED panels, which were actively used in the "The Mandalorian" series.
Media outlets suggest that Disney is simultaneously placing high hopes on the film as the first full-length release of the franchise in seven years, while also acting cautiously by limiting the budget.