Tytla and Babbitt quickly became two of Disney's top-salaried artists, and again shared a residence--this time a Tuxedo Terrace house complete with a maid. He continued to send money home and purchased for his family 150 acres of farmland in East Lyme, Connecticut. Babbitt started after hours "Action Analysis" classes and brought in Donald Graham to teach. Tytla was an eager participator in these classes (later to become officially sanctioned by Walt) which have been credited with the some of the phenomenal leaps in the quality of animation during this period.

During his "probationary" year in 1935 Tytla worked on shorts such as "Mickey's Fire Brigade" animating the broadly comic Clarabelle Cow, and "The Cookie Carnival" animating the gingerbread boy and girl as well as the rivalry between the Angel Food and Devil's Food cakes. He also animated his first "heavy", a bully rooster dancing the Carioca in "Cock O' the Walk." The great Grim Natwick remarked "Bill hovered over his drawing board like a giant vulture protecting a nest filled with golden eggs, he was an intense worker- eager, nervous, absorbed....Key drawings were whittled out with impassioned pencil thrusts that tore holes in the animation paper." His work didn't go un-noticed by Walt Disney and he was one of the first animators working on Snow White.

Fred Moore and Tytla were responsible for much of the design of the film and the definition of the personalities of the seven dwarfs. One of Tytlas famous scenes from the film (as described by John Canemaker) is where woman-hating Grumpy is kissed by Snow White. As he brusquely walks away, an internal warmth generated by the kiss gradually slows him, bringing a soft smile and sigh to his lips, revealing his true feeling of love. Grumpy's inner feeling are portrayed solely through pantomime- in his telling facial expressions, his body language, and the timing of his reactions.

One evening in 1936 in one of Don Grahams art classes, a vibrant and beautiful 22-year-old actress and fashion model from Seattle named Adrienne le Clerc posed for the animators, including Tytla. She shared his volcanic temperament, but admitted "My glass was half-filled with enthusiasm, his often half-empty with self-doubts. We were, however, definitely yin and yang." Their thirty-year marriage began on April 21 1938.