According to Mike Myers, less than a month before the film was released, the producers made plans for a sequel based on the book's sequel, The Cat in the Hat Comes Back. However, Audrey Geisel, Dr. Seuss's widow, was so appalled by this movie that she decided to reject any future live-action adaptations of her late husband's work. The sequel was eventually canceled.
According to cast and crew, working with Mike Myers on this film was a "horrible, nightmarish experience." Actors would wait for hours for Myers to come out of makeup, he only spoke to his handlers and director Bo Welch during down time on set, he had his handlers dress his trailer, and his area was all covered with tenting because he didn't want anybody seeing him. He also had a male assistant who sole job was to feed him chocolates from a Tupperware container, and the film ended up having long and pointless additional takes of scenes because he overruled Welch on whether they were good enough or not.
For the character of the Cat, Mike Myers was inspired by the cartoon Top Cat (1961), Bugs Bunny, and Bert Lahr's Cowardly Lion in The Wizard of Oz (1939) - especially how the Lion's tail seemed to be a disconnected part of his body.
Mike Myers was legally obligated to star in this film. In 1998, Myers signed a two-picture deal with Universal and Imagine Entertainment to write and star in a big-screen adaption of his Dieter character from "SNL" titled "Sprockets." Myers was to be paid $21.5 million for his efforts ($1.5 million for the script which he was already paid but ended up returning; $20 million for his acting).
He was originally going to be paid $10 million, but the success of Austin Powers: The Spy Who Shagged Me (1999), however, hiked up the comic's salary. In June 2000, during pre-production, the writer-actor announced that he wasn't happy with the script, and refused to move forward as he simply needed two more months' writing time (he already wrote 14 drafts of the film over two years). But Universal (banking on "Sprockets" as its summer 2001 tentpole) and producer Imagine Entertainment saw it as a breach of contract - Universal filed for $3.8 million to recoup preproduction costs; the Imagine suit demanded $30 million and called Myers "egomaniacal," "irresponsible," and "selfish." Myers countersued for $20 million for fraud, intentional infliction of emotional distress, and defamation, also stating he had been "emotionally traumatized" by the studio's "thug-like, outrageous, and reckless conduct." Representatives from DreamWorks ultimately helped negotiate an out-of-court settlement between Myers, Universal, and Imagine, with Myers agreeing to do a film for Universal and Imagine in place of "Sprockets"... this film.
The downtown area outdoor shots were filmed along a Pomona, California street, where several antique and gift shops are located. The community decided not to redecorate after filming ended, so the surreal paint scheme, and some of the signage, can still be seen as it appears in the movie.