After the success of the first film, Paragon Arts International was eager to begin work on a sequel, but production and budget problems with their film Night Angel (1990) prevented them from moving forward. Six years passed before the sequel was finally made under their new banner, Blue Rider Pictures.
Ami Dolenz had a no-nudity clause in her contract. However, Republic Pictures' foreign sales department decided after she was cast that nudity was crucial for international sales and pressured director Kevin Tenney to talk Ami into waiving the clause. Thinking it unethical, Tenney refused and later stated in an interview that it may have been the reason Republic tried to keep him from returning for Witchboard III: The Possession (1995).