The screenplay of Blue Velvet had been passed around multiple times in the late 1970s and early 1980s, with several major studios declining it due to its strong sexual and violent content. After the failure of his 1984 film Dune, Lynch made attempts at developing a more "personal story", somewhat characteristic of the surrealist style displayed in his first film Eraserhead (1977). The independent studio De Laurentiis Entertainment Group, owned at the time by Italian film producer Dino De Laurentiis, agreed to finance and produce the film.
The screenplay of Blue Velvet had been passed around multiple times in the late 1970s and early 1980s, with several major studios declining it due to its strong sexual and violent content. After the failure of his 1984 film Dune, Lynch made attempts at developing a more "personal story", somewhat characteristic of the surrealist style displayed in his first film Eraserhead (1977). The independent studio De Laurentiis Entertainment Group owned at the time by Italian film producer Dino De Laurentiis, agreed to finance and produce the film.