The earliest days ofPixar Animation saw the now-beloved movie studio producing many of the most beloved animated films of all time, while simultaneously changing the film industry with their groundbreaking use of three-dimensional CGI animation. After the success of the firstToy Storyin 1995, Pixar quickly followed that film up with 1998’sA Bug’s Lifeand 1999’sToy Story 2.
These first three films in the late ‘90s established Pixar asthe new powerhouse in animation. However, it was in the 2000s that the studio would cement itself as one of the best animation studios of all time. There were many films produced by the studio throughout that decade, such asFinding Nemo,The Incredibles,andRatatouille, but 2001’sMonsters, Inc.arguably tops them all.

Monsters, Inc.was the most successful film thatPixar had produced up to that point, as it grossed over $500 million at the worldwide box office, well more thanA Bug’s Lifeor eitherToy Storymovie. Additionally, it secured a nomination for Best Animated Feature at the Oscars in the very first year the award was introduced.
However, despite Pixar’s previously quick development of aToy Storysequel, it would be over a decade before audiences could return to the world ofMonsters, Inc.with the prequel film,Monsters University, in 2013. Despite this long wait, there were actually plans to develop a direct sequel to the original film, titledMonsters, Inc. 2: Lost in Scaradise, far sooner than that. Unfortunately, the plans for this sequel never came to fruition.
Over the last few decades, since the cancelation ofLost in Scaradise, more details about the movie’s plot and why it was canceled have come to light. Here’s what we know:
The Story Would’ve Reunited Mike and Sully with Boo
The plot ofMonsters, Inc. 2was intended to directlybuild off the story of the first film. About a year or so after the events of the first movie, the lead characters of Mike and Sully would have returned to the human world. They would have done so with the intent of celebrating the young girl Boo’s birthday with her. However, upon returning to Boo’s room, they discovered an old woman asleep in the bed. They come to realize that Boo and her family have in fact moved to an entirely new home. However, determined to be reunited with their friend, they set off on an adventure throughout the human world to find Boo’s new home.
This adventure would have seen Mike and Sully interacting with many other monsters who had been exiled to the human world, just as the Abominable Snowman had been in the first film. These other monsters would’ve included the likes of “El Chupacabra,” the Loch Ness Monster, and even Randall, the villain from the first film, played by Steve Buscemi. The film would also have revealed that the reason that monsters had been scaring kids was that the monsters were only visible to people that believed in them. This meant that they were able to travel the human world with relative ease, as most adults could not see them. That is, however, except for the film’s antagonist; an adult monster hunter named Simon Nerlich.
Many of these story details have become available thanks to an extended conversation one of the film’s screenwriters, Rob Muir, had with the YouTube channel, Hemmas Studios. We’ve provided a link to that video below for anyone who is looking for a more scene-by-scene breakdown ofLost in Scaradise. In general, the film seems like it would have brought much of the same wit and humor that made the firstMonsters, Inc.film so popular.
Related:The Scariest Monsters, Inc. Characters, Ranked
Pixar and Disney’s Evolving Relationship Resulted in the Movie’s Cancelation
To understand whyMonsters, Inc. 2: Lost in Scaradisenever came to fruition, we have to look more deeply into the relationship between Disney and Pixar. For the first decade or so of Pixar’s film production, they mostly created their films independently and then had them distributed worldwide by Disney. This was a partnership that had a lot of benefits, but it also eventually came to a crossroads that nearly saw the two studios parting ways forever.
While Pixar produced its first few films independently, the existing distribution deal between the two studios legally gave Disney the ownership rights to the films Pixar was producing. After a continued deterioration of negotiations between Disney and Pixar behind the scenes, Pixar announced they would be seeking a new distributor after the existing deal expired in 2006.
However, Disney wasn’t overly worried, because, with the rights to Pixar’s first few films, the Mouse House could produce as many sequels as it wanted to. With the purpose of doing this, Disney created their own 3D animation studio, named Circle Seven Animation, in 2004. Circle Seven immediately began development on a number of sequels, includingFinding Nemo 2, an alternate version ofToy Story 3, and, of course,Monsters, Inc. 2: Lost in Scaradise.
Lost in Scaradisewas co-written by Muir and Bob Hilgenberg, and it was far along in development by the time it was canceled. Some storyboarding for the film had been completed, as well as other early aspects of the pre-production process. However, the fork in the road came in 2006, when, instead of Pixar finding a new distributor, Disney purchased Pixar outright.
With this change, Disney saw fit to give the rights to any sequels back to the team at Pixar. As a result, the company had no need for the Circle Seven animation studio, and it was shut down altogether. In its brief two-year existence, Circle Seven did not complete or release a single movie. Pixar would ultimately go on to producea number of sequelson their own, includingToy Story 3and4,The Incredibles 2,Finding DoryandMonsters University.
Stream Monsters, INC on Disney+
Related:Why Monsters Inc. 3 Should Be Pixar’s First Horror Film
Could “Lost in Scaradise” Still Be Made?
Many of the fans ofMonsters, Inc.who have read or familiarized themselves with the abandoned story forLost in Scaradisehave found themselves disappointed that the film was never produced. The obvious next question is whether or not it is still in the realm of possibility for the movie to actually be made. While it is not an outright impossibility, at this point, it seems like a pretty long shot thatLost in Scaradisewill ever actually make its way to the big screen. There are a few specific reasons for this.
First of all, Disney and Pixar do not make a habit of revisiting old scripts and story ideas. Once something has been abandoned, it usually means that it is completely off the table. Because of this, Disney and Pixar likely have no interest in producingLost in Scaradise, especially considering it was produced without any sort of permission from Pixar in the first place. If there was ever a chance of the movie happening after Pixar’s re-acquirement of its sequel rights, it was lost entirely when the studio decided to move ahead with the prequel toMonsters Universityinstead.
On top of that, Disney and Pixar have already produced another new sequel toMonsters, Inc. That sequel has come in the form ofthe new Disney+ seriesMonsters at Work, which focuses on Mike, Sully, and a number of other monsters at Monsters Incorporated who are working through the transition from scare power to laugh power that was established at the end of the first film. Billy Crystal and John Goodman returned to voice the two lead roles, and they were joined by a new supporting cast that included the likes of Henry Winkler, Mindy Kaling, Ben Feldman, and Gabriel Iglesias.
John Ratzenberger and Alfred Molina also returned to the roles they played in the previous two films. That series on Disney+ has been generally well-received, and a second season is actively in production and set for release sometime in 2024. Sadly, for any fans who are desperately hoping for aLost in Scaradiserevival, the existence ofMonsters at Worklikely ends any chance of that sequel being made.