In a 2003 interview, Didi Conn explained why her character, Frenchy, disappeared halfway into the movie. She said the script was not finished when they began filming, but the draft they were using still included Frenchy. The character was written out during filming, and she was told halfway through that she was no longer needed. The filmmakers ultimately decided to include Frenchy in the final cut, though they had limited footage. Didi described the filming process as "rushed, frantic, and unorganized".
Michelle Pfeiffer and Maxwell Caulfield did not get along during filming. A few years after the film was released, Maxwell said in an interview that he and Michelle "got along infamously". Michelle stated in an interview that Maxwell was "self-adoring".
"Do It For Our Country" is a duet between Sharon and Louis. Maureen Teefy couldn't make it to the recording session, so Peter Frechette had to sing the whole song himself, which is why Maureen's vocals aren't on the movie's soundtrack. Her voice was dubbed in later.
Pamela Adlon was unable to complete filming because she was in a car accident on her way to the set midway through. Most of her scenes were already filmed, but stand-ins were used some scenes, such as the talent show sequence.
Andy Gibb was initially going to play the male lead, but he failed his screen test. Cher initially signed on to play Paulette Rebchuck, but backed out, complaining of a low salary and not having a finished script. Jennifer Beals signed on to play Sharon Cooper, but dropped out to play the lead character in Flashdance (1983).
Director Patricia Birch said the movie was originally going to be titled "Son of Grease". Producers wanted something more straightforward, so it was switched to "Grease 2". Maxwell Caulfield tried hard to get it changed back, saying that "Grease 2" was a boring title.
Several scenes were cut from the film, including: Frenchy trying to help Michael become a "cool rider", Michael talking to Stephanie and comforting her after the talent show, Goose accidentally slamming a door into Rhonda's nose, Davey helping Dolores stuff her bra at the luau so that she can be dating material for him, and a sequence at the very end where Michael and Stephanie fly off into the sunset on a motorcycle, similar to the ending of "Grease", where Danny and Sandy fly off into the sunset in a car.
Though the connection was never acknowledged in the movie, Johnny Nogerelli was originally intended to be the cousin of Danny Zuko from the first film. But Michael was Sandy's cousin, and the writers thought there were too many similarities.
Patricia Birch was the dance choreographer for the original Grease (1978). Publicity for this sequel stated that it was the first time a female choreographer had become a film director. This movie was her directorial debut, and her only theatrical film directing credit.