Historically, cut-out animation has been overshadowed by mass-produced cel animation made in Hollywood and Japan. There are historical and production-related reasons that have led to the under-appreciation of this animation form. However, cut-out animation comes with unique aesthetics and narrative characteristics that are not normally found in dominant cel animation. These special qualities deserve to be recognized and re-introduced. This research analyzes the genre-specific characteristics of cut-out animation with the goal to preserve and to further develop this animation form via a digital workflow. Findings of this study suggest that most of the characteristics of traditional cut-out animation can be preserved, and even improved, through a careful digital transition from analogue to digital production design.