In 1985, Densham, Watson and Richard Barton Lewis formed Trilogy, although their first effort, "The Zoo Gang" (1985), which Densham co-directed and co-wrote with Watson and co-produced with Watson and Lewis, was little seen. Densham began directing features in earnest with "The Kiss" (1988), a horror tale of a curse passed down generation-to-generation with a woman-to-woman kiss. In 1991, Trilogy finally became true Hollywood players when the trio produced the hit films "Robin Hood: Prince of Thieves", with Kevin Costner, and "Backdraft", directed by Ron Howard. Densham and Watson also co-wrote "Robin Hood", for which they were paid $1.2 million by Morgan Creek Prods. Subsequent feature efforts, which Densham produced, however, were not as successful: "Blown Away" (1994) and "Tank Girl" (1995). In 1996, Densham co-produced, directed and adapted a new version of "Moll Flanders" for the big screen. Critics praised the film for its strong performances, particularly Robin Wright in the title role and Stockard Channing as a madam, and its period detail.
Densham was slower to get a foothold in TV. He created and was executive producer of the short-lived 1993 CBS series "Space Rangers", starring Linda Hunt, and co-wrote and was executive producer of "Lifepod" (Fox, 1993), an updated remake of Alfred Hitchcock's "Lifeboat". Densham had better luck with "The Outer Limits" revived as a series for Showtime in 1995, and the subsequent "Poltergeist: The Legacy" (Showtime, Sci-Fi Channel and syndicated, 1996-99).