
The duo took inspiration from their own childhood programs like Romper's Room, Captain Kangaroo and The Mickey Mouse Club while also combining aspects of the then current kids' programs like Sesame Street and Mister Rogers' Neighborhood. Both Leach and Parker began testing videos on their children, taking notes of what worked and what didn't work, as well as going to different preschools for research. Parker also had a 2-year-old child named Kaitlin. When Sheryl pitched Barney & The Backyard Gang to her father-in-law Richard, he asked that Kathy help to develop the character and show concept. Sheryl's idea was brought to production at The Lyons Group, Leach, who was Sheryl's father-in-law, agreed to back her with the project with $700,000 of his own money. The board she proposed to turned her down. At the time Sheryl Leach was working at DLM, Inc. Sheryl Leach proposed a preschool video series, which eventually would be Barney & The Backyard Gang, to DLM, Inc (Developmental Learning Materials). Leach thought the idea of a talking blanket and teddy bear interacting with children were a neat idea, however, the blanket concept was too hard to pull off. Her initial thought was the notice of children carrying snugly security objects, such as blankets and teddy bears. This prompted Leach to develop a show herself. At the time, the only thing that could hold Patrick’s attention was a “Wee Sing” video. At this time, the only preschool aged programs around were Sesame Street and Mister Rogers' Neighborhood, however, they appealed to a larger age range, rather than strictly toddlers.

References from Waiting for Santa was made, including some elements like Kathy being afraid that Santa doesn't know her new address, which was the same way Derek felt in Waiting for Santa.This video is also been written by Mark S.Baby Bop was also disappeared into a cloud of sparkly dust when she leaves.Baby Bop has made a cameo appearance for the songs Joy to the World, The Dance of the Sugarplum Fairy, and The 12 Days of Christmas.The Baby Bop voice from “Happy Birthday Barney” is used.The Baby Bop costume from “Hi Neighbor” is used.

The Barney voice from “Be A Friend” is used.The Barney costume from “What’s That Shadow“ is used.The last use of the Season 1 intro sequence.The last time Barney and the kids use the magic words Shimbaree, Shimbarah.The last time Barney does the Barney Shake.The first time that Barney and Santa are actually seen interacting with each other.The only appearance of Kathy's Mom, and the first appearance of Kathy's Nana, who would later appear in Grandparents are Grand! (1993).The first being the Barney & the Backyard Gang video, Waiting for Santa. The second Christmas special in the Barney franchise.

And later on, they have some fun in Santa's workshop. Barney and the kids help Kathy deliver her letter to Santa, and visit The North Pole, with Barney's magic sleigh.
