When the 20,000 Leagues Under the Sea attraction closed in 1994, there was much speculation as to what would replace it. Finally, after a few years Ariel's Grotto appeared, providing a home for Ariel to meet and greet guests.

In addition to the character greeting area, a play area was incorporated into the attraction to provide a place for kids to blow off some steam (another play area has since opened right next door at Pooh's Playful Spot, providing another fun spot for kids to play).

The theming of Ariel's Grotto was carefully designed to blend in seamlessly with the rest of Fantasyland (which as everyone knows has little to do with the bottom of the sea!). The solution was arrived at by incorporating a circus style tent into the attraction, modeled after the one found on Cinderella's Golden Carrousel. While maintaining the same shape and whimsical design, the tent at Ariel's Grotto has its own special nautical touches, including a variety of gilded sea shells that circle the top.