Totally Hair Barbie was released in 1992 and sold over 10 million dolls worldwide, setting a record as the world's best-selling Barbie. Designer Carol Spencer told the press that five Mattel designers were trying to develop new ways to incorporate hair play into Barbie's design. None of their ideas worked, so with very little time before the doll had to go into production, Spencer realized that the best way forward was to dress Barbie with her hair. The resulting doll featured a variety of ankle-length hairstyles in different textures, available in both blond and brunette versions.

In 2017, designer Bill Greening reproduced the original to celebrate the doll's 25th anniversary.