The movie, from STXfilms, features Melissa McCarthy, Maya Rudolph and Elizabeth Banks in the lead roles, according to The Hollywood Reporter.
Brian Henson is directing the project, which is currently being shot in LA.
The film takes place in a world where humans and puppets coexist, with the puppets viewed as second-class citizens.
Todd Berger, Dee Robertson, Erich and Jon Hoeber and McCarthy wrote the script.
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