Neopets: Tales of Dacardia originally began development under the codename "Neopets X", with a demo being publicly revealed at San Diego Comic Con 2019. In 2020, the game went into open beta testing under the name Neopets: Island Builders, and was eventually released in 2022. However, after Neopets' parent company JumpStart dissolved in 2023, the game was rebranded into Neopets: Tales of Dacardia, which went through further development until its re-release in 2024.