
After seeing the map for the location was zoned as light industrial, Lucas named the group Industrial Light and Magic, which became the Special Visual Effects department on Star Wars. Dykstra brought together a small team of college students, artists, and engineers and set them up in a warehouse in Van Nuys, California. Trumbull declined as he was already committed to working on Steven Spielberg's film Close Encounters of the Third Kind (1977), but suggested his assistant John Dykstra to Lucas. After discovering that the in-house effects department at 20th Century Fox was no longer operational, Lucas approached Douglas Trumbull, best known for the effects on 2001: A Space Odyssey (1968) and Silent Running (1972). Lucas wanted his 1977 film Star Wars to include visual effects that had never been seen on film before.

As of 2023, Industrial Light & Magic has won 15 Academy Awards for Best Visual Effects. In 2012, The Walt Disney Company acquired ILM as part of its purchase of Lucasfilm.

ILM originated in Van Nuys, California, then later moved to San Rafael in 1978, and since 2005 it has been based at the Letterman Digital Arts Center in the Presidio of San Francisco.

It is a division of the film production company Lucasfilm, which Lucas founded, and was created when he began production on the original Star Wars, now the fourth episode of the Skywalker Saga. Industrial Light & Magic ( ILM) is an American motion picture visual effects company that was founded on by George Lucas.
