Original plans were for this to be the second installment in a franchise of four movies and a TV series. When the movie flopped, plans for a franchise were thrown out. Disney ended up adapting the unused script for the third movie, which become High School Musical (2006).
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 in the song
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).
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.
Unlike Michelle Pfeiffer, Maxwell Caulfield's career was severely damaged by the film. He has been quoted as saying: "Before Grease 2 came out, I was being hailed as the next Richard Gere or John Travolta. However, when Grease 2 flopped, nobody would touch me. It felt like a bucket of cold water had been thrown in my face. It took me 10 years to get over Grease 2."
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.
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.
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.
During the talent show audition scene, while the "Preptones" are auditioning, Ms. Mason turns to the principal and secretary and says, "Those are my boys." This is a bit of an inside joke, as Connie Stevens had sung in high school as part of a group called the Fourmost before leaving to take her role in Hawaiian Eye. The remaining three members decided to remain a trio and became the original iteration of the Lettermen, after whom the Preptones were modeled.
Though Sandy and Michael are said to be cousins, they live on different continents and have different last names. Michael never talks about Sandy to Frenchy, or vice versa, even though Frenchy and Sandy were best friends in the original.