 Additionally von Weise wrote on the movement of entire sets across the border in railcars with “precious carnival costumes” amid numerous other set pieces that were brought along and used by local Venetians as extras in the film.Adolf Hitler and Goebbels had a well-documented disagreement over how propaganda for the Third Reich should be produced, with Goebbels favouring the Volksfilm style.He referred to "Münchhausen" as a “popular film in the truest sense of the term.”

The film was released at a pivotal point in Nazi rule following the massive losses of the 6th Army at the Battle of Stalingrad and was an attempt at reinvigorating the German population.