Barney was created in 1987 by Sheryl Leach of Dallas, Texas. She came up with the idea for the program while considering TV shows that she felt would be educational and appeal to her son. Leach then brought together a team who created a series of home videos, Barney and the Backyard Gang, which also starred actress Sandy Duncan in the first 3 videos. Later, Barney was joined by the characters Baby Bop, BJ, and Riff.

Although the original videos were a modest regional success, Barney only became a major success when the character and format were revamped for series television and picked up by the Public Broadcasting Service, debuting as "Barney & Friends" in 1992. The series was produced by Lyrick Studios (bought by HIT Entertainment) and Connecticut Public Television. For several years, the show was taped at the ColorDynamics Studios facility at Greenville Avenue & Bethany Drive in Allen, after which it moved to The Studios at Las Colinas, Texas. Currently, the series is produced in a northern suburb of Dallas. The TV series and videos are currently distributed by HIT Entertainment.