In 2006, James Cameron stated that if "Avatar" is successful, he hopes to make two more sequels to the film. In 2010, he said that the film's widespread success confirmed that he would keep his promise.

The sequels were originally slated for release in December 2014 and 2015, with that trend; he still included some scenes in the first film that would later allow the story to continue. Cameron planned to film the sequels back-to-back and announced that the sequels would expand the universe by exploring the other moons of Polyphemus.

The Way of Water entered production on August 15, 2017, with Manhattan Beach, California, as the primary location.
Cameron produced the film with Jon Landau and wrote the screenplay with Rick Jaffa and Amanda Silver, based on a story the three wrote with Josh Friedman and Shane Salerno. Actors Sam Worthington, Zoe Saldana, Stephen Lang, Joel David Moore, Giovanni Ribisi, Dilip Rao, and Matt Gerald reprise their roles from the original film, while Sigourney Weaver returns in a different role. New cast members include Kate Winslet, Cliff Curtis, Edie Falcone, Jemaine Clement, and Brendan Cowell.

The film's theatrical release has been delayed twice, most recently to 2020. "Avatar. The Waterway premiered in London on December 6, 2022, and will open theatrically in the US on December 16, 2022. Three more sequels are planned for 2024, 2026, and 2028, though the latter two will depend on the commercial reception of The Way of Water.

A week before the film's release on December 16, North American domestic box office estimates for the weekend were projected to be $167–192 million, and the film was projected to earn $662–861 million for its total domestic gross. As always, Cameron has enormous challenges, not only artistically but commercially. Cameron was behind one of the most expensive films of all time ($237 million), which actually became one of the highest-grossing films of all time ($2.92 billion). It won three Oscars, and now, 13 years later, he's hoping to top it all with Avatar: The Way Of Water in continuation.

More than a decade after the events of the first film, Jake Sully lives with his sons Neteyam and Loak and daughter Tuk, as well as his adopted daughter Kiri and a boy named Spider, the son of Miles Quaritch, who was born on Pandora and was unable to move to Earth. : Humans return to Pandora to colonize it by building a new main operating base. Among the new arrivals is Quaritch, who has been cloned into a Navi's body and supplemented with the memories of his template.

On review aggregator, Rotten Tomatoes, reviews from nearly 200 critics are still 83% positive. It is said in conclusion: "Historically, it might be pretty standard stuff, but visually, 'Avatar: "The Way of Water" is a stunningly immersive experience.

Famous critic James Berardinelli said the overall narrative has a familiar Cameronian touch and the plot is engaging enough, and the characters are all nuanced, while New York Post critic Johnny Oleksinski said The Way Of Water has a more emotionally vibrant plot and stronger character development. And drama, ensuring that we will all once again leave the star-studded cinema screen in awe, filled with magical disbelief at what we just saw.