Walt Disney introduces each of the Seven Dwarfs in a scene from the original 1937 Snow White theatrical trailer.After the creation of two cartoon series, Disney soon began plans for a full-length feature in 1934. In 1935, opinion polls showed that another cartoon series, Popeye the Sailor, produced by Max Fleischer, was more popular than Mickey Mouse.[55] Disney was, however, able to put Mickey back on top, and also increase Mickey's popularity further by colorizing him and partially redesigning him into what was considered to be his most appealing design up to this point in time.[36] When the film industry came to know about Disney's plans to produce an animated feature-length version of Snow White, they dubbed the project as "Disney's Folly" and were certain that the project would destroy the Disney studio. Both Lillian and Roy tried to talk Disney out of the project, but he continued plans for the feature. He employed Chouinard Art Institute professor Don Graham to start a training operation for the studio staff, and used the Silly Symphonies as a platform for experiments in realistic human animation, distinctive character animation, special effects, and the use of specialized processes and apparatus such as the multiplane camera; Disney would first use this new technique in the 1937 Silly Symphonies short The Old Mill.[56]

All of this development and training was used to elevate the quality of the studio so that it would be able to give the feature film the quality Disney desired. Snow White and the Seven Dwarfs, as the feature was named, was in full production from 1934 until mid-1937, when the studio ran out of money. To acquire the funding to complete Snow White, Disney had to show a rough cut of the motion picture to loan officers at the Bank of America, who gave the studio the money to finish the picture. The finished film premiered at the Carthay Circle Theater on December 21, 1937; at the conclusion of the film, the audience gave Snow White and the Seven Dwarfs a standing ovation. Snow White, the first animated feature in English and Technicolor, was released in February 1938 under a new distribution deal with RKO Radio Pictures; RKO had previously been the distributor for Disney cartoons in 1936, after it closed down the Van Beuren Studios in exchange for distribution.[57] The film became the most successful motion picture of 1938 and earned over $8 million in its original theatrical release