The first film produced by Jesse L. Lasky after he was forced out of Paramount, a company he had co-founded. Writer Preston Sturges told Lasky the story and Lasky asked him to do a rough treatment. Instead, Sturges turned in a completed script, and Lasky called it "the most perfect script I'd ever seen". He shot the film exactly as Sturges had submitted it.
Preston Sturges has written that he based the story on his second wife's grandfather, C.W. Post, founder of a company which later became General Foods. However, except for Post's humble beginnings and the fact he committed suicide, the story bore no resemblance to his life.
A suit was brought against the Fox Film Corporation by Robert Maxwell, leader of The Maxwell Choristers, for alleged damages caused by the dubbing of their voices with "Nearer My God, to Thee," in a scene in which they were singing "Ave Maria." He claimed his reputation was damaged by not using their original voices. Although he later dropped the suit and the scene was eventually cut, the song is heard in the opening scene without the choir being shown.
Both Irene Dunne and Mary Astor were considered for the role of Sally.
In her autobiography, Colleen Moore called this her favorite of her own movies and called Spencer Tracy the best actor she ever worked with.