The budget for the game's launch was $250,000 by Jeffrey Katzenberg.

The game was showcased at the 1993 Summer Consumer Electronics Show. The game features some musical arrangements from the film, along with original pieces composed by Donald Griffin and Tommy Tallarico. Virgin was given the deadline of October 1993 to complete production as to coincide with the home video release of the film this deadline left Virgin with about three-quarters the normal amount of time to build a game. The game used traditional animation, which was produced by Disney animators under the supervision of Virgin's animation staff, including animation producer Andy Luckey, technical director Paul Schmiedeke and animation director Mike Dietz, using an in-house 'Digicel' process to compress the data onto the cartridge. The work was then shipped to Virgin's California facility to be digitized. DevelopmentДevelopment for the game began in January 1993, with a team of ten animators working on the animation frames, making it the first video game to use hand-drawn animation. If Abu comes into contact with a hazard, the bonus level ends. In these levels, the player must maneuver Abu left and right to collect gems, apples and extra lives that drop to the ground while avoiding pots, rocks, fish, Iago's cousins, palace guards and other hazards. If the player picks up an Abu Token in two levels, a bonus level featuring Aladdin's pet monkey Abu as the player character will initiate following the Genie's Bonus Machine. When the player runs out of Genie Tokens or if they land on a picture of Jafar, the minigame will end. The amount of Genie Tokens collected in a level determines the amount of rounds that can be played in the minigame. If the player collects one or more Genie Tokens and clears a level, the player will be taken to the 'Genie's Bonus Machine', a luck-based minigame in which pressing a button rewards the player with a random prize consisting of a gem, five apples or an extra life. On occasion, ' smart bombs' in the form of Jafar's lamp can be found and triggered, which will result in the elimination of all on-screen enemies. Wishes allow the player to continue the game from the current level after losing their last life instead of having to start again from the beginning. Aside from apples, Aladdin can collect gems, which can be traded with the Peddler in each level for extra lives and 'wishes'. The amount of lives and apples Aladdin is equipped with at the start of the game is determined by the difficulty setting, which can be adjusted in the main menu. If Aladdin's last life is lost, the game prematurely ends.

Extra lives can be received by collecting golden icons in the shape of Aladdin's head hidden in the levels. Blue vases within the levels act as checkpoints from which Aladdin will be revived if he had passed one before losing a life. If Aladdin runs out of health, a life will be lost. Health can be restored by collecting blue Genie Hearts scattered throughout the levels. The trail shortens whenever Aladdin is harmed by an enemy or environmental hazard. Aladdin's health is indicated by a trail of smoke emanating from the Genie's lamp on the top-left corner of the screen. The apples are a finite resource, but can be collected in abundant amounts throughout the game. Aladdin's primary forms of offense against enemy characters are a scimitar for short-range slashing attacks and apples that can be pelted as long-range ammunition. Disney's Aladdin is a side-scrolling platform game in which the player controls Aladdin throughout settings and a storyline based on the namesake film.

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