The project was originally announced in April 2019 under the working title Suriya 39, marking the actor's 39th film as a lead. It had begun pre-production in January 2021. Production was scheduled to start after Suriya had wrapped up Soorarai Pottru (2020). However, it was delayed after Siva got to direct Annaatthe (2021). Filming was later postponed, and eventually the project was shelved. Subsequently, in January 2022, Suriya disclosed that the film was still in progress. At one point, Gnanavel Raja opted out from producing the film as it is the costliest film he ever produced. Later, UV Creations agreed to take it up and Raja decided to produce it jointly.

The film was reannounced in August that year with the tentative title Suriya 42 as it became Suriya's 42nd film in a leading role. Principal photography commenced that month in Chennai and is expected to be completed in November 2023. It was also filmed in various locations of Goa, Kerala and Kodaikanal. The title Kanguva was announced in April 2023. The technical crew includes Devi Sri Prasad, Vetri Palanisamy and Nishadh Yusuf as musician, cinematographer and editor respectively. Made on a budget of ₹200−250 crore (US$−31 million), Kanguva is the fifth most expensive Indian film to date.

Kanguva is scheduled to be released theatrically in early 2024 in 2D as well as 3D formats.