The first attempt at Estonian animation took place as early as in 1931. In one of the photo studios of those days some enthusiastic young men decided, following Walt Disney's model, to make a cheerful animation named The Adventures of Juku-Doggy. It is not known whether or not they managed to finish it, for all that remains of this attempt is four minutes of silent black-and-white film.

The next effort was made 40 years later. In 1971 in the Eesti Telefilm studio a nine-minute animated film, Camera of the Curious, was made by Ants Kivirähk and Jaak Palmse. In the same year, Rein Raamat founded a department of animation at the Tallinfilm studio and by the next year it had made Raamat's first film, The Water-Carrier. Kivirähk and Palmse made another animated film, Suchlike Stories, but after that animated films were made solely in the animation department of Tallinnfilm. The making of an animated film has always been a very costly process that requires a lot of work. The budget of a full-length animation is not any lower than that of a feature film.

There were about 20 animators working at Tallinnfilm and every year four ten-minute animations were produced. The first steps were taken under the guidance of the specialists of Sojuzmultfilm, who were called in from Moscow. According to the political system of that time, Moscow was the beginning and end of everything. It was the source of the money for making films, and of the decisions about which films to distribute and which filmmakers to send to film festivals abroad. Russian films were, of course, dominant. However, in order to demonstrate the "unfailing friendship of nations", the films of other Soviet republics had occasionally to be allowed abroad as well. As Raamat employed the most interesting artists of Estonia in making animated films, the Estonian animations attracted attention from their very beginning. Unlike the fine art of the rest of the Soviet Union, which had to function within a very strict framework, Estonian art was much more open and searching. It also gained recognition abroad: with his second film, The Flight, Raamat won the prize for the best debut at the famous international film festival of Zagreb.

In a very short time Estonian animation established a recognised position in the cultural life of Estonia. Raamat invited talented young artists to work at the animation department of Tallinnfilm. Artists Aavo Paistik, Ando Keskküla and Rein Tammik made their first films there. The majority of the animations of that time are lyrical-epic. Raamat's The Big Tõll brought to the screen the original mythological world of the artist Jüri Arrak and Aavo Paistik proved to be both masters of children's films while also interestingly conveying the philosophical worlds of adults. The top film of that period is most definitely Raamat's Hell. This 30-minute film, based on the drawings of famous Estonian artist Eduart Viiralt, enchanted the viewer with its visual expressiveness and emotion. The music, written by Lepo Sumera, is most certainly one of the most memorable among Estonian film-scores.

Raamat could not rest on his laurels for long, for Priit Pärn had begun his work in the studio. As one of the most original of caricaturists, he brought into animation the sharpness, absurdism and black humour that had so far been either absent altogether or very weakly expressed. Pärn's first animated film, Is the Earth Round?, was so unexpected and different that the film officials in Moscow decided not to allow the film to be distributed - just in case. Hoping that the producer would draw the right conclusions, they decided to let him continue making films. Pärn's next film, And Plays Tricks, brought him many important prizes at various film festivals. The international film world recognised Pärn's films immediately. In 1987 Pärn made his major film, Luncheon on the Grass. A year or two earlier it would have been unheard of to allow this kind of politically incorrect film onto the screens of the Soviet Union, but the political situation had began to change and the Moscow film officials reluctantly gave their permission. Jaan Ruus, a film critic, has called this film a practically unique ingenious Estonian film. The story, carefully intertwined through several main characters, tells of the life of a poet in a totalitarian world. The film was also highly successful at festivals.

In 1991 the Soviet Union fell apart, and hard times began for major national enterprises. As a consequence of the politics of Estonia's new national government, the Tallinnfilm studio was split into several separate departments. The Estonian Republic, now independent once more, promised to support private enterprise, so all these new departments also became private studios.

The animation department of Tallinnfilm became an independent studio, Estonian Animated Film. The transition from socialism to capitalism hit the film industry hard in almost every republic of the former Soviet Union. The newly liberated republics were facing problems far more urgent, and cinema with its own difficulties suddenly seemed small and insignificant. The Republic of Estonia was the only one that continued to support its national cinema, albeit only at a tenth of the previous rate. This is what saved Estonian animation. The artistic level of films meant for festivals was as high as ever. Films by Pärn, Mati Kütt, Heiki Ernits, Janno Põldma and Priit Tender were constantly screened in various festivals around the world. Pärn's absurdist film 1895, which was dedicated to the 100th anniversary of the history of film, got as many as 17 prizes at various festivals. In addition to that, 1895 was nominated the best Estonian film of the year.

At the same time it became apparent that the studio had to start making money on its own to supplement the scarce sums it got from the state. The only way to do that was by successfully selling its films. As the sale of films made for festivals alone did not give enough income, the studio decided to make a series for children: Tom and Fluffy. As this first attempt proved rather successful, under the direction of Ernits and Põldma another series was made: Lotte, about the adventures of a little girl dog named Lotte. This humorous and non-violent series for children proved to be an excellent sales item. 15 different TV stations around the world, from Germany to China and Australia, acquired broadcasting rights. In addition Lotte was nominated the best film of the year 2000. The third film by Ernits and Põldma, Ladybirds' Christmas, again proved successful. This film also gathered a record number of viewers in the cinemas of Estonia.

With the money earned from these children's films, the studio purchased the up-to-date technical equipment necessary for making animations. The days are now past when the paint was applied to transparencies with a brush. The preparation of young filmmakers is taken care of by the leading figure of Estonian animation, Priit Pärn. Being a widely recognized teacher of animation and the head of the film department at the Higher Art School of Turku (Finland), he takes care that the occasional talented young Estonian filmmaker is among his graduates. Ülo Pikkov and Kaspar Jancis have already made their first independent films after having graduated from Turku film school. That these young men are carrying on in the best tradition of Estonian animation is verified by the fact that both films have been selected for numerous festivals; and Pikkov has also begun to receive prizes.

What makes up the phenomenon of Estonian animation? Several factors, apparently. Firstly, Raamat managed to steer clear of copying mainstream films from the Soviet Union, and invited talented and original artists to work for his studio. Thus even the very first animated films were visually interesting. The powerful arrival of Pärn brought along absurdism and playfulness in both the content and the form. The surrealist films of Kütt are the best examples of Estonian surrealism. Therefore it can be said that Estonia's animated films give a wonderful overview of Estonian culture. They are well known at home and appreciated abroad. How long can this last? Certainly as long as Estonia's festival showpieces can stay this fresh and original and its childrens' films can stay this fascinating.