The deal is a multi-year, global licensing agreement to develop construction toys based on the new animated show.
The range will launch in North America in the spring of 2011 and worldwide in autumn.
"Dinosaur Train brings new characters and adventures to our preschool construction portfolio, offering young children a fun new way to enjoy the Mega Bloks experience," said Vic Bertrand, Chief Innovation Officer of Mega Brands.
"The Jim Henson Company is a global leader in delivering top-quality properties that are both entertaining and educational, and we look forward to working together to combine our market leading preschool construction brand with this great license."
Created by Craig Bartlett (Hey Arnold!), each 30-minute episode of Dinosaur Train includes two 11-minute animated segments featuring Buddy, a pre-school age Tyrannosaurus rex and his adoptive Pteranodon family.