The Lilly Belle on display at Disneyland Main Station in 1993. The caboose's woodwork was done entirely by Walt himself.Main article: Carolwood Pacific Railroad
During 1949, Disney and his family moved to a new home on a large piece of property in the Holmby Hills district of Los Angeles, California. With the help of his friends Ward and Betty Kimball, owners of their own backyard railroad, Disney developed blueprints and immediately set to work on creating a miniature live steam railroad for his backyard. The name of the railroad, Carolwood Pacific Railroad, originated from the address of his home that was located on Carolwood Drive. The railroad's half-mile long layout included a 46-foot (14 m)-long trestle, loops, overpasses, gradients, an elevated berm, and a 90-foot (27 m) tunnel underneath Mrs. Disney's flowerbed. He named the miniature working steam locomotive built by Roger E. Broggie of the Disney Studios Lilly Belle in his wife's honor. He had his attorney draw up right-of-way papers giving the railroad a permanent, legal easement through the garden areas, which his wife dutifully signed; However, there is no evidence of the documents ever recorded as a restriction on the property's title.

Expanding into new areas
As Walt Disney Productions began work on Disneyland, it also began expanding its other entertainment operations. In 1950, Treasure Island became the studio's first all-live-action feature, and was soon followed by 20,000 Leagues Under the Sea (in CinemaScope, 1954), Old Yeller (1957), The Shaggy Dog (1959), Pollyanna (1960), Swiss Family Robinson (1960), The Absent-Minded Professor (1961), and The Parent Trap (1961). The Walt Disney Studio produced its first TV special, One Hour in Wonderland, in 1950. Disney began hosting a weekly anthology series on ABC named Disneyland after the park, where he showed clips of past Disney productions, gave tours of his studio, and familiarized the public with Disneyland as it was being constructed in Anaheim, California. The show also featured a Davy Crockett miniseries, which started a craze among the American youth known as the Davy Crockett craze, in which millions of coonskin caps and other Crockett memorabilia were sold across the country.[74] In 1955, the studio's first daily television show, Mickey Mouse Club debuted, which would continue in many various incarnations into the 1990s.

As the studio expanded and diversified into other media, Disney devoted less of his attention to the animation department, entrusting most of its operations to his key animators, whom he dubbed the Nine Old Men. During Disney's lifetime, the animation department created the successful Lady and the Tramp (in CinemaScope, 1955), Sleeping Beauty (in Super Technirama 70mm, 1959), One Hundred and One Dalmatians (1961), and The Sword in the Stone (1963).

Production on the short cartoons had kept pace until 1956, when Disney shut down the shorts division. Special shorts projects would continue to be made for the rest of the studio's duration on an irregular basis. These productions were all distributed by Disney's new subsidiary, Buena Vista Distribution, which had assumed all distribution duties for Disney films from RKO by 1955. Disneyland, one of the world's first theme parks, finally opened on July 17, 1955, and was immediately successful. Visitors from around the world came to visit Disneyland, which contained attractions based upon a number of successful Disney properties and films.

After 1955, the show, Disneyland came to be known as Walt Disney Presents. The show transformed from black-and-white to color in 1961 and changed its name to Walt Disney's Wonderful World of Color, moving from ABC to NBC,[75] and eventually evolving into its current form as The Wonderful World of Disney. It continued to air on NBC until 1981, when CBS picked it up.[76] Since then, it has aired on ABC, NBC, Hallmark Channel and Cartoon Network via separate broadcast rights deals. During its run, the Disney series offered some recurring characters, such as Roger Mobley appearing as the newspaper reporter and sleuth "Gallegher", based on the writing of Richard Harding Davis.

Disney had already formed his own music publishing division back in 1949. In 1956, partly inspired by the huge success of the television theme song The Ballad of Davy Crockett, he created a company-owned record production and distribution entity called Disneyland Records.