The Care Bears:A New Generation was released on released on January 1, 1986 and grossed $8 million in theaters. This movie was a prequeal to the first movie that was released and told how the Care Bears and Care Bear Cousins came to be. The movie does not explain about Grams, Hugs, or Tugs though. (A comic book that was produced later gives some information on theses characters.)

This movie was produced by Nelvana and Columbia Pictures.