Farzi was originally conceived as a film by Raj & DK in 2014, with Shahid Kapoor and Nawazuddin Siddiqui attached, and Kriti Sanon joining the cast later that year, before it was reworked into a television series by 2019.

Raj & DK offered Vijay Sethupathi a role while they were in Chennai filming The Family Man; he joined the Farzi production 40 days after shooting had already begun.

Vijay Sethupathi credited his co-star Raashii Khanna, with whom he had previously worked in Tamil films, for helping him feel comfortable on set.

Principal photography began at Film City, Mumbai in July 2021, with additional filming taking place in Goa, Alibaug, Nepal, and Jordan.

Frequent Raj & DK collaborators Sachin–Jigar composed two songs for the series, 'Paisa Hai Toh' and 'Sab Farzi', while Tanishk Bagchi composed the third song, 'Aasmaan'.

The series shares continuity with Raj & DK's spy series The Family Man, featuring cameo appearances from actors reprising their Family Man roles; writer Sita Menon said the crossover scene was not pre-planned and came to co-creator Raj on the day of the shoot.

To promote the show, Prime Video partnered with food delivery service Swiggy to send out fake ₹2,000 notes to customers who placed orders.

In March 2023, a YouTuber named Joravar Singh Kalsi and his friend Gurpeet Singh were arrested in Gurgaon for recreating a scene from the series in which they threw fake currency notes from a speeding car.

According to consulting firm Ormax Media, Farzi became the most-watched Indian streaming series of all time, with a projected 37 million viewers, surpassing the record previously held by Rudra: The Edge of Darkness (2022).