He had been raised around puppets, inherited his grandmother's collection of them, developed them as a hobby that enhanced the impression he made on other artists, and finally in 1917, turned them into a profession.

In 1921, Sarg animated the film The First Circus, an inventive cartoon for producer Herbert M. Dawley, who was credited as co-animator.

[1] In 1928, he designed, and his protégé Bil Baird built tethered helium-filled balloons up to 125 ft (38 m) long, resembling animals, for the New York institution of Macy's department store.

In 1935, he undertook the puppet-related work of designing Macy's elaborate animated window display, which was shown between Thanksgiving and Christmas.

He designed salons and sophisticated interiors for high-end department stores and restaurants, including the supper club at New York's Waldorf Astoria.