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Making its theatrical debut on March 12, 1988, Char's Counterattack is the culmination of the original saga begun in Mobile Suit Gundam and continued through Mobile Suit Zeta Gundam and Mobile Suit Gundam ZZ, marking the final conflict of the fourteen-year rivalry between the characters Amuro Ray and Char Aznable. It was adapted from Mobile Suit Gundam: High Streamer, a novel written by Gundam creator Yoshiyuki Tomino.

In addition to being the first original Gundam theatrical release, Char's Counterattack was also the first Gundam production to make use of computer graphics during a five-second shot of the Sweetwater colony rotating in space, being made at Toyo Links.