On 22 January 2008, production of the film was disrupted following the death of Heath Ledger in New York City. Ledger's involvement had been a "key factor" in the film's financing.[4] Gilliam was presiding over concept art when he received the phonecall that told Ledger had died; his initial thought was "The film's over, it's as simple as that."[6] Although production was suspended indefinitely by January 24,[8] according to Christopher Plummer, who plays Doctor Parnassus, Gilliam, determined to "salvage" the film, initially considered using computer-generated imagery to make Heath Ledger's character magically change his appearance, perhaps into another character, in order to keep his final work in the film, and, if the film were made, would dedicate it to Ledger.[9] The imagery would be similar to transformation techniques seen on Brad Pitt in The Curious Case of Benjamin Button and those employed to Roy Scheider in his posthumous release Iron Cross.
Actors Johnny Depp, Colin Farrell and Jude Law were cast to replace Heath Ledger, portraying the new idea of transformed versions of Ledger's character traveling through a magical realm. With the role recast, filming resumed in Vancouver in March 2008.[10] Depp was a friend of Gilliam who starred in Fear and Loathing in Las Vegas and the aborted The Man Who Killed Don Quixote, and had been compared to Ledger by cinematographer Nicola Pecorini. Law was a friend of Ledger and had been considered for the role of Tony, while Farrell was friends with Ledger.[6] Depp, Farrell, and Law opted to redirect their wages for the role to Ledger's young daughter, Matilda, who had been left out of an old version of Ledger's will,[11] and Gilliam altered the part of the credits saying "A Terry Gilliam film" to "A film from Heath Ledger and friends."[6]