Is Baby Yoda (Grogu) a puppet or CGI?

Werner Herzog was so moved by the puppet that he begged the filmmakers not to replace it with digital effects.

The answer

Grogu in The Mandalorian is primarily a practical animatronic puppet built by Legacy Effects, the studio founded by protegees of the legendary Stan Winston. The puppet cost approximately $5 million to construct and requires two puppeteers to operate - one controlling the eyes and mouth, another handling additional facial expressions. The puppet contains extensive wiring and custom silicone skin designed to look realistically fleshy. When director Dave Filoni began removing the puppet to shoot a CGI backup take, guest director Werner Herzog passionately intervened, urging the team to use only the practical puppet. CGI is applied afterward to refine movements and erase visible puppeteering elements, but the core performance comes from the physical prop. Grogu's voice blends human infant vocals with recordings of a bat-eared fox and kinkajou.

Source: Wikipedia

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