For the scene where Freddy kills Jennifer, his line in the script was "This is it Jennifer, your big break on TV!" Robert Englund said this line for the first two takes, but on the third take changed it to "Welcome to Prime Time, bitch!" Director Chuck Russell couldn't decide which version to use, so he edited the two together.
Ken Sagoes stated in an interview he really didn't want to audition for the role of Kincaid, but his agent talked him into going. On the day of the audition he walked in heavy rain to catch a bus to the location. He showed up completely drenched and had to sit and wait for a few hours due to the auditions running late. When it was his turn, director Chuck Russell told him, "Do whatever you want to do". Sagoes was so frustrated and mad about the whole ordeal that he yelled "FUCK YOU!", and then proceeded to scream and curse out Russell. Russell immediately hired him.
The original premise of the film involved Freddy invading the real world and haunting the actors and crew responsible for the "Nightmare on Elm Street" films. This idea was rejected by the studio, though Wes Craven later used it for New Nightmare (1994).
Dick Cavett was given his choice of guests for his show. He chose Zsa Zsa Gabor because he said he would never have had her on his show, thought very little of her intelligence, and felt that if there was anyone he'd like to see get killed on his show, it was her.
The original "Freddy Snake" unintentionally came out looking too phallic. The crew only had one hour to film the scene so they didn't have enough time to paint it. So, it was covered in a green goo substance to overcome the "pinkish hue." The scene involving the "Freddy Snake" attempting to swallow Kristen was also filmed backwards and then played in reverse due to the gums on the puppet being too flexible and were folding over themselves.
The scene in which Neil Gordon (Craig Wasson) is thrown into the grave and partially buried by the skeleton of Freddy is a tribute to Body Double (1984), in which Wasson's character is similarly buried alive.
When the clay puppet face turns into Freddy's, special-effects man Doug Beswick used stop-motion animation. Filming began with a clay Freddy face that was made plainer in each frame. The result was then run backwards, and that is what appears in the final cut of the film.
Early in the film, when Nancy meets the teenage patients, Phillip says "welcome to the snake pit." "Snake pit" is a slang term for a mental health facility, and was a common slang term throughout most of the twentieth century.
The script by Wes was darker and more graphic language. Kristin had a friend named Becky who was killed by freddy before the events of the movie and Nancy meets in a dream before being written out. Also all the characters were being drawn to the institution from all over the country. Kincaid could fly, Joey had superstrength, Taryn could become invisible, will had another name and was the dream wizard. Kristen pulled people into dreams. Will had another name and had try to commit suicide because he left his brother alone in a pool then drowned. Freddy used this memory to get to him and taryn's dead grandmother to kill her. Nancy was a patient. Philiph was killed by sleepwalking into traffic and getting hit by a ambulance. Joey creates the nightmare house and gives it to Kristen. Joey is seduced by a girl he crushed on in high school and then killed. Philip and Jennifer's ghost told Nancy where to find Freddy's glove to kill him. Nancy's father was blinded and a patient in the sanitorium. Also freddy takes neils image but Nancy sees through it and turns the blade on Freddy but is still gutted
The bar where Nancy and Dr. Gordon meet Nancy's Father is called "Little Nemo's." "Little Nemo in Slumberland" is the name of a comic strip by Winsor McCay about the adventures of a child in the land of dreams.
The shirt Taryn is wearing in the beginning has the cover art of Dokken's 1984 album, 'Tooth And Nail'. 'Tooth And Nail' contains 'Into The Fire', a track that can be heard on the radio in some versions of the film.
For the "sexy nurse" scene, the set was flipped so that Rodney Eastman was actually standing up when he appears to be strapped to the bed. He had to be spread eagled for so long that he actually passed out. He compared the experience to a crucifixion.
In the original script, one of the Warriors dreams up a giant Transformers-style robot to fight Freddy. The sequence even made it into the storyboards stage, but budgetary constraints made filming it impossible.
At the very end of the first film, when Nancy is in the car with all of her friends the car goes driving off without their control. This is the same car that we see in this movie. It is the car in the junkyard that has Freddy's bones in it.
FX creator Mark Shostrom created a desiccated "little girl corpse" which Kristen would discover she was holding, but it was decided that the item was too grotesque. A miniature skeleton was used instead.
Freddy was suppose to be born at the beginning of the film in a ranch style house and was suppose to be the place where his victims winded up. Also Nancy and her father were suppose to try to burn it down but freddys influence on it wouldn't allow it
Robert Englund improvised quite a few of Freddy Krueger's one-liners, but the best-known example happened in Dream Warriors, in a scene where Freddy emerged from a television set and killed a girl by smashing her head into it. The scripted line was "This is it, your big break in TV!" which Englund said on the first take. When the director went for an alternate angled shot however, Englund changed the line to "Welcome to Prime Time, bitch!" The different camera angle made it easy to edit the two lines together, and it became probably Freddy's defining one-liner. According to The Other Wiki, the line was originally "You're on TV now, girl!"