The film was released on VHS and DVD on December 3, 2002. In 2003, a 2-disc DVD version was announced alongside special edition DVDs of Alice in Wonderland and Pocahontas, which were released in 2004 in Australia and 2005 in the UK respectively. A 2-disc special edition DVD of Lilo & Stitch was released in the UK on August 22, 2005, alongside the UK release of Lilo & Stitch 2: Stitch Has a Glitch, but a release in the US suffered from continuous delays. While chaos is perfect in space, Lilo has completely different problems: after the death of her parents, she tries to cope with her everyday life together with her sister Nani, who lovingly takes care of her. Nani, however, lives with the constant fear that Lilo will be taken away from her and placed in a foster family, as her supervising social worker doubts that she can take over Lilo's upbringing. To please her little sister, Nani decides to let Lilo choose a dog from the shelter.

Dean DeBlois, who had co-written Mulan (1998) with Sanders, was brought on to co-write and co-direct Lilo & Stitch, while Disney executive Clark Spencer was assigned to produce. Unlike several previous and concurrent Disney Feature Animation productions, the Lilo & Stitch pre-production team remained relatively small and isolated from upper management until the film went into full production. The character and set designs were based upon Chris Sanders' personal artistic style. Mertle's given name is a unique variant spelling of the female given name Myrtle, which is derived from the name of the plant Myrtus.A Mulan poster appears in Nani's room. Also, at one point, Lilo, Nani, and Stitch pass by a restaurant called "Mulan Wok".

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