Based on Victor Herbert's popular 1903 operetta Babes in Toyland,[2] the film was produced by Hal Roach, directed by Gus Meins and Charles Rogers,[3] and distributed by Metro-Goldwyn-Mayer.

In contrast to the stage version, the film's story takes place entirely in Toyland, which is inhabited by Mother Goose (Virginia Karns) and other well-known fairy tale characters.

Their tranquil existence is disrupted by the malevolent Silas Barnaby, who harbors intentions to wed Bo Peep and seize control of their shoe abode through foreclosure.

Faced with imminent eviction, Ollie impulsively offers their meager savings to stave off the threat, unaware that Stannie has squandered the funds on peewees.

In a desperate gambit to thwart Barnaby, the duo embarks on a futile burglary endeavor, culminating in their arrest and sentencing to banishment in Bogeyland.

Despite Bo Peep's reluctant agreement to Barnaby's demands to spare their lives, Stannie and Ollie endure a dunking and face impending exile.

Employing guile and resourcefulness, Stannie and Ollie devise a cunning scheme to disrupt Barnaby's machinations during Bo Peep's wedding ceremony.

However, Barnaby exacts vengeance by framing Bo Peep's true love, Tom-Tom, for "pignapping," leading to his unjust banishment to Bogeyland.

A climactic confrontation unfolds in Bogeyland, where Tom-Tom valiantly defends Bo Peep from Barnaby's advances, while Stannie and Ollie join the fray to repel the Bogeymen.

The film crescendos with the triumphant march of the wooden soldiers, orchestrated by Stannie and Ollie, driving back the Bogeymen and vanquishing Barnaby, restoring peace to Toyland.

Included in the film, in the order in which they are performed, are: "Toyland" (opening), "Never Mind Bo-Peep", "Castle in Spain", "Go to Sleep (Slumber Deep)", and "March of the Toys" (an instrumental piece).

The village of Toyland was built on sound stages at Hal Roach Studios with the buildings painted in vivid storybook colors, leading Stan Laurel to regret that the film wasn't shot in Technicolor.

The edited version of the film had the opening tune "Toyland" trimmed and the "Go to Sleep (Slumber Deep)" number cut completely.

[citation needed] WPIX has not enforced its copyright on March of the Wooden Soldiers, effectively making the film an orphan work.