Though it was released after A Nightmare on Elm Street (1984), The Hills Have Eyes Part 2 was shot before A Nightmare on Elm Street went into production. Writer-director Wes Craven has claimed that only about two thirds of the movie was shot before the studio halted production due to budget concerns. When A Nightmare on Elm Street became a box office success, the studio convinced Craven to finish Hills Have Eyes Part 2 using only the footage that had already been shot. Since there was not enough for a feature length film, footage from the first The Hills Have Eyes (1977) was edited in to pad out the running time. Wes Craven has since disowned the movie.

Wes Craven claims that he did this film because he was in need of money and since then has disowned it.

Even Michael Berryman admitted that he thought this sequel was terrible.

Wes Craven thought John Bloom's voice wasn't strong enough for his role as The Reaper, so he had Nicholas Worth loop all of Bloom's lines in post-production.