Director, Tobe Hooper and co-writer of the original The Texas Chain Saw Massacre (1974), Kim Henkel originally had an idea for a sequel that would feature an entire town of cannibals, and also be a satire of the film Motel Hell (1980), which itself was a satire of the original Texas Chainsaw Massacre. The title of that sequel was to be 'Beyond The Valley Of The Texas Chainsaw Massacre', but the studio forced considerable changes to be made to the screenplay, even hiring a new screenwriter, and the result of those changes are what became Texas Chainsaw Massacre part 2.
Caroline Williams wanted to make a strong impression at her audition. When she was called in, she went to the end of the hallway and ran screaming into the room, where she pulled Tobe Hooper and L.M. Kit Carson out of their seats and used the chairs to barricade the door before she began her scene.
A release in West Germany in 1986 was not possible because the film was banned before the film could be released to theaters. In 2012 Turbine Medien acquired the rights to the film and started work on getting the banishment revoked. It took them four years until the local court of Berlin-Tiergarten finally lifted the banishment.
Chop-Top asks Stretch if the tape of the opening scene murders is from "the Rambo III (1988) soundtrack". Rambo III had not yet been released at the time The Texas Chainsaw Massacre 2 came out; it was released two years later.
Many fans of The Texas Chain Saw Massacre (1974) disliked this movie due to its emphasis on gore and wacky humor. Tobe Hooper has argued that black humor was also present in the original film, but viewers did not acknowledge it because of its shocking content.
Hoyts Distribution, who had distributed 90 percent of Cannon's titles in Australia, submitted this film for classification in 1986. The film was deemed highly offensive by the classification board and refused a rating - effectively banning the film. Hoyts considered cutting the film, but the scenes and elements that offended the board were so many that it was decided to not release the picture all together. The ban stayed in effect until MGM resubmitted the film some twenty years later and "The Texas Chainsaw Massacre Part 2" was finally released.
Throughout the film, many references are made to the "Red River Rivalry" or "Red River Shootout" in regards to the football game going on during the film. This was not invented for the film. As any avid college football fan can tell you, the "Red River Rivalry" is the common name for the animosity between the University of Oklahoma and the University of Texas. The film takes place during OU vs. Texas weekend.