Eddie Murphy's Candy Cane Lane is based on a real place in El Segundo, California known for its extravagant Christmas light displays. The real Candy Cane Lane is a cooperative effort among neighbors, unlike the high-stakes competition portrayed in the movie. The film's screenwriter, Kelly Younger, grew up on the actual Candy Cane Lane and wanted to portray a warm climate Christmas instead of the typical snowy settings.

Eddie Murphy's Candy Cane Lane is set on a street where Christmas lights are taken to an extreme level, and the film's writer, Kelly Younger, based this location on a real-world slice of holiday spirit. The Prime Video movie features a massive decorating contest and centers around a particularly magical lawn ornament that brings "The Twelve Days of Christmas" to life. Though the real Candy Cane Lane doesn't involve vengeful elves and runaway Lords a-Leaping, it is an actual place that Christmas lovers can visit.