According to Al Lowe, sometime after the release of Leisure Suit Larry in the Land of The Lounge Lizards there were talks about a live-action Leisure Suit Larry movie. Al even stated that Jim Carrey was one of the considered actors to play as Larry. The movie didn't go through into full production. Al later stated that the scripts he was handed for the film "didn't feel like the game".

The game started out as a remake of an early Sierra game called "Softporn Adventures." It had no protagonist, little or no plot, almost no text, and understood almost none of the commands the player input. Al Lowe is quoted in saying "it's so behind the times it might as well be wearing a leisure suit!" This gave him the idea of creating the main character.