In December of 1939, Pal and his wife left England for the United States, eventually settling in Los Angeles, California. Approaching Paramount Pictures Studios, Pal showed them some of the animated short films that he had produced while in Europe. Immediately, Paramount saw the aesthetic and commercial value of the films, and allowed Pal to open an animation studio on the Paramount lot.
As the animation studio's director and producer, Pal created a series of puppetoons (now called Madcap Models) for Paramount. Hiring woodworkers, carpenters, set designers, model makers, and prop builders, Pal succeeded in creating animated shorts that, up to that time, were unsurpassed in quality and ingenuity.