linguistic:paraphrasing, information:classification, stylistic:tone
Early films (1985–1995)

Following the success of Nausicaä of the Valley of the Wind, Miyazaki and Takahata founded the animation production company Studio Ghibli on June 15, 1985, as a subsidiary of Tokuma Shoten, with offices in Kichijōji designed by Miyazaki. Miyazaki named the studio after the Caproni Ca.309 and the Italian word meaning "a hot wind that blows in the desert"; the name had been registered a year earlier. Suzuki worked for Studio Ghibli as producer, joining full-time in 1989, while Topcraft's Tōru Hara became production manager; Suzuki's role in the creation of the studio and its films has led him to being occasionally named a co-founder, and Hara is often viewed as influential to the company's success. Yasuyoshi Tokuma, the founder of Tokuma Shoten, was also closely related to the company's creation, having provided financial backing. Topcraft had been considered as a partner to produce Miyazaki's next film, but the company went bankrupt in 1985. Several staff members subsequently hired at Studio Ghibli—up to 70 full-time and 200 part-time employees in 1985—had previously worked with Miyazaki at different studios, such as Telecom, Topcraft, and Toei Doga, and others like Madhouse, Inc. and Oh! Production.

In 1984, Miyazaki traveled to Wales, drawing the mining villages and communities of Rhondda; he witnessed the miners' strike and admired the miners' dedication to their work and community. He was angered by the "military superpowers" of the Roman Empire who conquered the Celts and felt this anguish, alongside the miners' strike, was perceptible in Welsh communities. He returned in May 1985 to research his next film, Laputa: Castle in the Sky, the first by Studio Ghibli. Its tight production schedule forced Miyazaki to work all day, including before and after normal working hours, and he wrote lyrics for its end theme. Miyazaki used the floating island of Laputa from Gulliver's Travels in the film. Laputa was released on August 2, 1986, by the Toei Company. It sold around 775,000 tickets, making a modest financial return, though Miyazaki and Suzuki expressed their disappointment with its box office figures of approximately US$2.5 million.

After the success of Nausicaä, Miyazaki visited Yanagawa and considered imitating it in an animated film, fascinated by its canal system; instead, Takahata directed a live-action documentary about the region, The Story of Yanagawa's Canals (1987). Miyazaki produced and financed the film, and provided several animated sequences. Its creation spanned four years, and Miyazaki considered it his social responsibility—to both Japanese society and filmmaking—in seeing it produced. Laputa was created partly to fund production of the documentary, for which Takahata had depleted his funds. In June 1985, Nausicaä of the Valley of the Wind was released in the United States as Warriors of the Wind, with significant cuts; almost 30 minutes of dialogue and character development were removed, erasing parts of its plot and themes. Miyazaki and Takahata subsequently refused to consider Western releases of their films for the following decade.

Miyazaki's next film, My Neighbor Totoro, originated in ideas he had as a child; he felt " Totoro is where my consciousness began". An attempt to pitch My Neighbor Totoro to Tokuma Shoten in the early 1980s had been unsuccessful, and Miyazaki faced difficulty in attempting to pitch it again in 1987. Suzuki proposed that Totoro be released as a double bill alongside Takahata's Grave of the Fireflies; as the latter, based on the 1967 short story by Akiyuki Nosaka, had historical value, Suzuki predicted school students would be taken to watch both. Totoro features the theme of the relationship between the environment and humanity, showing that harmony is the result of respecting the environment. The film also references Miyazaki's mother; the child protagonists' mother is bedridden. As with Laputa, Miyazaki wrote lyrics for Totoro ' s end theme. Miyazaki struggled with the film's script until he read a Mainichi Graph story about Japan forty years prior, opting to set the film in the country before Tokyo's expansion and the advent of television. Miyazaki has subsequently donated money and artwork to fund preservation of the forested land in Saitama Prefecture, in which the film is set.

Production of My Neighbor Totoro began in April 1987 and took exactly a year; it was released on April 16, 1988. While the film received critical acclaim, it was only moderately successful at the box office. Studio Ghibli approved merchandising rights in 1990, which led to major commercial success; merchandise profits alone were able to sustain the studio for years. The film was labeled a cult classic, eventually gaining success in the United States after its release in 1993, where its home video release sold almost 500,000 copies. Akira Kurosawa said the film moved him, naming it among his hundred favorite films—one of few Japanese films to be named. An asteroid discovered by Takao Kobayashi in December 1994 was named after the film: 10160 Totoro.

In 1987, Studio Ghibli acquired the rights to create a film adaptation of Eiko Kadono 's novel Kiki's Delivery Service. Miyazaki's work on My Neighbor Totoro prevented him from directing the adaptation; he acted as producer, while Sunao Katabuchi was chosen as director and Nobuyuki Isshiki as script writer. Miyazaki's dissatisfaction of Isshiki's first draft led him to make changes to the project, ultimately taking the role of director. Kadono expressed her dissatisfaction with the differences between the book and screenplay, but Miyazaki and Takahata convinced her to let production continue. The film was originally intended to be a 60-minute special, but expanded into a feature film after Miyazaki completed the storyboards and screenplay. Miyazaki felt the struggles of the protagonist, Kiki, reflected the feelings of young girls in Japan yearning to live independently in cities, while her talents reflected those of real girls, despite her magical powers. In preparation for production, Miyazaki and other senior staff members traveled to Sweden, where they captured eighty rolls of film in Stockholm and Visby, the former being the primary inspiration behind the film's city. Kiki's Delivery Service premiered on July 29, 1989; it was critically successful, winning the Anime Grand Prix. With more than 2.6 million tickets sold, it earned ¥2.15 billion at the box office and was the highest-grossing film in Japan in 1989. Miyazaki and Studio Ghibli personally approved the subsequent English translations.

From March to May 1989, Miyazaki's manga Hikōtei Jidai was published in the magazine Model Graphix, based on an earlier film idea he had assigned to a younger director in 1988 that fell through due to creative differences. Miyazaki began production on a 45-minute in-flight film for Japan Airlines based on the manga; Suzuki extended it into a feature-length film, titled Porco Rosso, as expectations and budget grew. Miyazaki began work on the film with little assistance, as its production overlapped with Takahata's Only Yesterday (1991), which Miyazaki co-produced. The outbreak of the Yugoslav Wars in 1991 affected Miyazaki, prompting a more sombre tone for Porco Rosso; the Croatian War of Independence moved the film's setting from Dubrovnik to the Adriatic Sea. Miyazaki later referred to the film as "foolish", as its mature tones were unsuitable for children, noting he had made it for his "own pleasure" due to his love of planes.

Except for the Curtiss R3C-2, all planes in Porco Rosso are original creations from Miyazaki's imagination, based on his childhood memories. The film also pays homage to the work of Fleischer Studios and Winsor McCay, which were influential to Japanese animation in the 1940s. The film featured anti-war themes, which Miyazaki would later revisit. The protagonist's name, Marco Pagot, is the same as an Italian animator with whom Miyazaki had worked on Sherlock Hound. Some female staff at Studio Ghibli considered the film's Piccolo factory—led by a man and staffed by women—an intentional mirroring of Studio Ghibli's staff, of whom many are women; some viewed it as Miyazaki's respect for their work ethic, though others felt it implied women were easier to exploit. Japan Airlines remained a major investor in the film, resulting in its initial premiere as an in-flight film, prior to its theatrical release on July 18, 1992. It was Miyazaki's first film not to top Animage ' s yearly reader poll, which has been attributed to its mature focus. The film was commercially successful, becoming the highest-grossing film of the year in Japan; it remained one of the highest-grossing films for several years.

During production of Porco Rosso, Miyazaki spearheaded work on Studio Ghibli's new studio in Koganei, Tokyo, designing the blueprints, selecting materials, and working with builders. The studio opened in August 1992, and the staff moved in shortly after Porco Rosso ' s release. Around this time, Miyazaki started work on the final volumes of the manga Nausicaä of the Valley of the Wind, which he created in-house at Studio Ghibli. In November, two television spots directed by Miyazaki were broadcast by Nippon Television Network (NTV): Sora Iro no Tane, a 90-second spot adapted from the illustrated story Sora Iro no Tane by Rieko Nakagawa and Yuriko Omura; and Nandarou, a series of four five-second advertisements featuring an undefinable creature. Miyazaki assisted with the concept of Takahata's Pom Poko (1994), and designed the storyboards and wrote the screenplay for Kondō's Whisper of the Heart (1995), being particularly involved in the latter's fantasy sequences. Critics and fans began to see Kondō as "the heir-apparent " to Studio Ghibli.