This movie was the first one Columbia Pictures filmed after it moved onto the Warner Brothers lot in 1972, creating The Burbank Studios, to facilitate both production companies. The castle set from Camelot (1967) was recycled as Shangri-La. The medieval turrets were removed and replaced with Tibetan gables to simulate Himalayan Buddhist monasteries. Most of the castle's lower levels remained intact, and the courtyard was replaced with layered steppes and fountains. The set remained on the studio's backlot for several years before it was torn down to make way for a new office building.
This was producer Ross Hunter's first movie for Columbia Pictures after producing a string of hits for Universal Pictures over twenty years, including Imitación de la vida (1959), Madame X (1966), and Aeropuerto (1970). After its huge commercial failure, it was his last.
Pierre Cardin put out a line of costume jewelry, watches and belts "inspired by Lost Horizon." Marrakech, Ltd. had a line of "Lost Horizon" shirts for men, Periphery a line of women's attire, Rijir a line of colognes and soaps, and Brown Jordan a line of rattan furniture all designed for that Shangri-La look. Craft Masters put out a paint-by-number set, and Saalfield marketed a "Lost Horizon" coloring book.
This movie is listed among the 100 Most Enjoyably Bad Movies Ever Made in Golden Raspberry Award founder John Wilson's book "The Official Razzie Movie Guide."
In a 1975 magazine interview with Rona Barrett, producer Ross Hunter acknowledged the failure of the soundtrack. "When we hired Bacharach and David to write the songs, we didn't know they were on the verge of dissolving their partnership. When they finally delivered the music, we were already deep into pre-production. We knew it was a bum score, but we couldn't do anything about it."