The company was founded by Klasky and Csupo in a spare room of their apartment in 1982, and grew to 550 artists, creative workers, and staff in an animation facility in Hollywood. During the 1990s and early-mid 2000s, they produced and animated era-defining shows for Nickelodeon such as Rugrats, Aaahh!!! Real Monsters, Santo Bugito, The Wild Thornberrys, Rocket Power, As Told by Ginger and All Grown Up!. In the mid-2000s, Nick ended their long-running partnership with Klasky Csupo and its shows ceased production. The company then went dormant but was reinstated in 2012.
Klasky Csupo was started in 1982 in the spare bedroom of a Hollywood apartment where Klasky and Csupo were living while married.
Klasky Csupo was initially distinguished by its work on logo designs, feature film trailers, TV show titles, promos and spot ID's for a wide variety of clients, in the process earning a reputation as the industry's most imaginative and innovative studio. Building on its success, the studio opened its first facility in Hollywood in 1988 at the corner of Fountain and Highland Avenues. The studio soon grew to include six buildings that have become well known in Hollywood — in true Klasky Csupo style, the exterior walls of the buildings are decorated with large murals of its characters.
The studio's first big break came in 1987 when James L. Brooks of Gracie Films hired the studio to produce the title sequence for a new comedy series called The Tracey Ullman Show. In addition to the main title, Klasky Csupo was given the opportunity to produce a series of one-minute cartoons which featured a group of characters called The Simpsons, created by Matt Groening. Klasky Csupo produced and animated all 48 shorts, and when it became one of the most popular segments on the show, Fox Television began airing a weekly half-hour series entitled The Simpsons. Klasky Csupo produced every episode for the first three seasons of the series. The studio shared the 1989–1990, and 1990–1991 Primetime Emmy Award for Outstanding Animated Program, with Gracie Films.
In addition to that, Klasky Csupo produced the hit video "Do the Bartman". Klasky Csupo animator and colorist Gyorgyi Peluce conceived the idea of The Simpsons characters having yellow skin, and Marge Simpson having blue hair, opting for something which "didn't look like anything that had come before." Klasky Csupo was also responsible for an error during the episode "Homer's Odyssey" in which Waylon Smithers was animated with the wrong color, and was made African American.