Although the film is called "Loaded Weapon 1", a sequel never happened. There was every intention to make "Loaded Weapon 2". A deal had been set in place before this movie had gone into production, and a poster had even been printed with the caption, "Oh come ON, you knew it was coming!". However, when the movie under-performed at the box-office, the deal was severed.
Denise Richards plays one of Denis Leary's four girlfriends in the scene where he's playing the piano. Charlie Sheen, who had a cameo as the valet attendant, did it as a favor to his brother Emilio Estevez, would marry Richards about ten years after this film was made and they would divorce soon thereafter.
This was originally intended to be a film based on the Sledge Hammer! (1986) television series, as the show's creator, Alan Spencer, had a deal with New Line to produce a film for them. However, Spencer hated all of the scripts that were handed to him (since they did not meet the show's plot or tone) and severed ties shortly after.
During the war of words between General Mortars (William Shatner) and McCracken (Denis Leary), McCracken tries to win the argument with the line "Life is very short and there is no time for fussin' and fightin', my friend!" a line from The Beatles song "We Can Work It Out".
There are several references to commercials in the film. The Head & Shoulders shampoo joke, "It's tingling", Lance Kinsey's foot on fire "Athlete's foot", and the obvious Girl Scout Cookies references.
Writer-director Gene Quintano is also uncredited as a writer for characters for Police Academy 5: Assignment Miami Beach (1988). He is also credited for writing the scripts for Police Academy 3: Back in Training (1986), and Police Academy 4: Citizens on Patrol (1987).
In the scene where the drug deal is taking place between William Shatner and his potential buyers, the lead dealer tells his assistant to "use the 'Vista' credit card, you get frequent flyer miles". This was an in-joke to the actual Visa credit card, which was actually offering this rewards program, as an incentive for people to charge their purchases on their credit cards, at the time.
Joke awards that the film won, or were nominated for, featured on the DVD cover, include: Best Moonlit Butt Shot; Best Product Placement; Best Performance by a Beaver in a Supporting Role; Best Performance by a Cross Dresser in a Support Hose; Best Expression on a dead body since Hoffa (1992); and Best Overworked plot since Police Academy 5 (Police Academy 5: Assignment: Miami Beach (1988)).
Joke critic comments on the DVD cover say: "On a scale of 1 to 10!" - Important Critic ; "Shorter than Dances with Wolves (1990)" - Really Important Critic ; and "The movie's even FUNNIER than the video cover!" - Really, Really Important Critic".
Bruce Willis: As John McClane. Willis did a cameo for this film, in character, as a personal favor to his brother David Willis, who is the producer of this film. Willis' cameo spoofs the fact he only "worked" in Los Angeles, as he actually "lives" in New York City.