Ooo a Return to Oz thread. Return to Oz is quite a bit more faithful to the books.
There's a teensy bit of social/political oommentary in there that's hard to miss, especially in the movie (use of electroshock treatment to deal with supposed mental cases). Anyway, yes, there is a sequel and it was released in the early-mid 80s with a fair amount of pre-release hype. I mean, a sequel to The Wizard of Oz? Despite the rather lofty position it holds in Hollywood cinematic history (which I think is kind of undeserved....its not a really good movie to me), Return to Oz outclasses it in a number of ways. Problem is, even with the hype, early reviews and word of mouth killed the film quickly. It wasn't that it was bad, it was that (as evidenced by this thread) it was deemed too scary and intense for little kids who Disney assumed would be the main demographic for the movie (I'm pretty sure it was a Disney release, though I might be wrong.....nonetheless you can catch it once in a long while on the Disney channel). Anyway, the movie ended up being a bomb, despite being a decent movie. It just didn't fit the same mold as the first movie, and people shunned it almost immediately for that fact.
That said, there are plenty of scary prospects in the movie, but its a much more realized version of Oz IMO. It definitely has that 80s adventure/fantasy vibe to it that defined so many other childhood films of the day.