The main reason this film was made because Paramount wanted to achieve the success of the Disney DtV and The Land Before Time sequels (the former beginning with Aladdin 2: The Return of Jafar (1994); the latter beginning with The Land Before Time II: The Great Valley Adventure (1994), both released in 1994).
Originally, Paramount had plans for a third film (to be released in Spring 2004), where Wilbur, Nellie, and Templeton return to the Hirsch farm to reunite with Cardigan, Joy, Aranea, and Bessie. Wilbur would have a love interest named "Angel," voiced by Jennifer Hale, and it would have featured two comic relief characters "Raven" and "Crow," voiced by Paul Walker and Josh Peck. It would also have featured a new villain - a coyote named "Long Claw," and he would have been voiced by Mark Hamill. However, due to the negative reception from critics and fans of the second film, along with the film not doing well financially, the third film was canceled. However, the concept of Raven and Crow was reworked into Elwyn and Brooks in Charlotte's Web (2006).
Paramount wouldn't revive the Charlotte's Web films for three years, until Charlotte's Web (2006), which was warmly received by critics and fans.
This film was originally going to be a Spring 2003 direct-to-video release, but Paramount insisted on giving it a December 2002 theatrical release first.
Although this film was released in 2003, it was produced in 2002 according to the credits. It was first released theatrically on December 6, 2002, a few months before its VHS and DVD release, and after the film was completed.