This movie was based on "Chandu the Magician," a radio show that was airing at the time. Chandu was the basis for many of the later magician characters, including DC's Sandor the Mystic and Marvel Comics's Dr. Strange.
In the subsequent Chandu serial, producers promoted Lugosi to the role of the magician-yogi.
Cost-conscious Fox studios paid $40,000 for the rights to Chandu. Lugosi received $2500, Ware $1250, Hammond $100, Walthall $1000, and Stuart $300.Filming was completed July 1932.