The series is based on Guo Jingming's bestselling novel City of Fantasy, which sold over 1.5 million copies and ranked second on the bestseller list; since its 2003 release, several attempts to adapt it into a film failed because its fictional universe was considered too complex and massive to condense into a movie.

The idea for a drama adaptation had been forming since November 2014, and at the August 2015 press conference, screenwriter Shen Zhining explained the show would expand on the novel with more stories, conflicts, background lore, and a bigger role for the Fire Tribe.

Ice Fantasy marks the second collaboration between lead actors Feng Shaofeng and Victoria Song, following the Chinese remake of My Best Friend's Wedding.

Principal photography lasted 187 days, running from mid-August 2015 to late February 2016, with filming taking place in Beijing, Chifeng in Inner Mongolia, and Hebei's Jinzuan Movie City.

The production built at least six major sets at the Zhongying Base in Huairou, including the 'Endless Sea' set, which covered over 7,000 square meters and used about 500 tons of artificial snow.

The show reportedly involved around 300 craftsmen making thousands of props (over 900 weapons and 1,370 costumes), used 45,000 square meters of green screen, and required a production crew to work 2,400 hours to finish the props in time.

Academy Award-winning set designer Dan Hennah, known for his work on The Lord of the Rings, was brought on as art director to design sets inspired by both ancient Chinese and Western architecture and landscapes, while the international visual effects company Pixomondo also worked on the production.

About 70 to 80 percent of the show's post-production budget was devoted to special effects and CGI, with roughly 60 percent of the overall budget of over 330 million yuan going toward effects work.

The Boston Symphony Orchestra was engaged to record the drama's orchestral background score, which included around 50 tracks featuring unusual instrumentation such as Irish flute, sitar, duduk, bassoon, and bagpipes.

Pechoin, the sole sponsor of the production, had singer Jay Chou—its brand spokesperson—compose and perform the theme song 'Shouldn't Be,' which was later included on his 2016 album Jay Chou's Bedtime Stories.

Although the series received low ratings and was criticized on Douban for its special effects, acting, and storyline, it was a major commercial success, garnering over 16 billion online views.

The release of the final episodes was delayed due to censorship reviews.