Lucas, creator of the blockbuster "Star Wars" franchise, is the executive producer and wrote the story for the film that opens in US theatres on Friday.
Inspired by "A Midsummer Night's Dream", with a cast of talking mushrooms, goblins and elves created by Lucasfilm Animation Singapore and Industrial Light & Magic, it is a tale Lucas has been working on between other projects for 15 years.
While the "Star Wars" films were created for 12-year-old boys, Lucas said "Strange Magic" is a musical fairy tale for young girls with a message about the most unlikely people falling in love.
"I wanted to see if I could tell a story using contemporary music, matching the words up to the story, which was a bit of a challenge and fun for me to do," Lucas, 70, said in an interview.
Fairies, elves and goblins battle for a magic love potion, created by the Sugar Plum Fairy, while belting out songs such "Can't Help Falling in Love", "Mistreated", "Trouble" and "Wild Thing".
"Strange Magic" travels between the magical Fairy Kingdom and the foreboding Dark Forest, where the menacing Bog King, voiced by actor Alan Cumming ("The Good Wife"), has imprisoned the Sugar Plum Fairy so love cannot enter his realm.