Aggie reads the children a bedtime story called "Halloweentown", about a mystical place where witches, vampires and monsters live in peace away from mortals.

Gwen is angry that her mother encourages the children to enjoy Halloween, and insists Marnie will be raised as a mortal, like her father was, rather than a witch.

The three begin looking for Aggie, and are approached by Kalabar, the mayor of Halloweentown, who gets them a cab driven by Benny, a skeleton who tells corny jokes.

She says she will start Marnie's witch training, but has to take care of "the bad thing" first: in her cauldron, a vision of a hooded figure appears, laughing maniacally.

The children escape, and collect the necessary ingredients - the hair of a werewolf, the sweat of a ghost, and a vampire's fang - to make the potion that will activate the talisman and unfreeze the others.

When they arrive to install it, the demon appears and reveals himself to be Kalabar, who tries to persuade the townspeople to join him in taking over the mortal world.

With Luke's help, Marnie climbs onto the jack-o'-lantern and attempts to place the talisman inside, but Kalabar casts a spell to freeze her.

In 1991, Sheri Singer, senior vice-president of TV movies[5] for Walt Disney Television, was assigned to collaborate with White on films to fulfill the contract with NBC.

'"[7] Dubbed Halloweentown the concept was pitched to NBC as part of the movie deal, and the network greenlit the project.

[11] In a 2020 Galaxy Con question-and answer panel, Judith Hoag revealed she had a meeting with the head of Disney Television where she read for the part.

[1] The 'Nob Hill Riverview' bed and breakfast in Saint Helens was used for exterior shots of Aggie Cromwell's Halloweentown home.

[13] The voice of the skeleton Benny was added in post-production; as a result, the actors on set were performing opposite a voice-less animatronic.

[21] Laura Fries of Variety said that Halloweentown gains momentum after a slow start, largely due to the presence of "screen legend" Debbie Reynolds.

They noted that although the film does not fully showcase Reynolds' acting skills, the actress manages to embrace her role as a matriarchal witch returning to guide her granddaughter into the family tradition.

Furthermore, Fries complimented the writing by Jon Cooksey and Ali Matheson, saying it incorporates topical humor and whimsical elements.

[22] Allison McClain Merrill of The Daily Beast stated that Halloweentown features strong performances, citing Kimberly J.

Merrill found that the film's setting provides a fresh and enchanting dimension to Disney Channel's fall programming.

Moreover, Merrill appreciated the film's message of creativity, individuality, and the importance of supportive relationships, which continues to resonate with audiences decades after its release.

[23] Ashton Tate of MovieWeb asserted that Halloweentown stands out as one of the pioneering Disney Channel Original Movies.

They praised Halloweentown for its role as a memorable introduction to its world and characters, noting the charm and nostalgic appeal of its low-budget effects.

Tate also acknowledged that the success of the original film was pivotal in establishing the franchise, which has since become a beloved annual tradition for many fans.

[24] Ellen Dendy of Common Sense Media gave Halloweentown a score of three out of five stars and praised the film for its focus on brave and empathetic female characters who work together to protect their community, and for resolving family conflicts with love and mutual respect.

Brown was nominated for Best Performance in a TV Movie/Pilot/Mini-Series or Series - Leading Young Actress at the 20th Youth in Film Awards.