The original Little Nightmares game was developed by Tarsier Studios, a Swedish video game developer, and published by Bandai Namco Entertainment. Tarsier Studios created the first Little Nightmares in 2017 and its sequel, Little Nightmares II, in 2021. However, for Little Nightmares III, development was taken over by Supermassive Games, known for Until Dawn, while Tarsier Studios moved on to other projects such as Reanimal. Despite the change, some former members of Tarsier Studios have contributed to Little Nightmares III.