Wesley Snipes originally wanted to play Scotty Appleton. However, Mario Van Peebles and Barry Michael Cooper insisted that he play Nino Brown, as the part was written especially for him.
On Inside the Actors Studio (1994), Chris Rock claimed that for several years following his acclaimed performance as a crack addict, drug dealers would approach him and put crack and cocaine in his pocket; joking that "they thought it was a documentary." He stated that, although he knew people who used crack at the time, he never did and, in his 1997 memoir "Rock This" had only smoked marijuana twice.
Mario Van Peebles had formed a friendship with Clint Eastwood when the pair made El sargento de hierro (1986). When Van Peebles took the "New Jack City" screenplay to Warner Bros., the studio was interested in the material, but weren't keen on having an unknown as the director/lead actor. Eastwood personally vouched for Van Peebles and told Warner Brothers to "give the kid a shot". The success of the film launched Van Peebles's directing career.
Story is largely based on a real-life Detroit gang known as The Chambers Brothers. Writer Barry Michael Cooper got the idea for the film after visiting Detroit and learning about the gang's exploits.
The chase between Scotty and Pookie was improvised. The original idea was for the chase to be a car chase, but the movie had gone over budget and was in danger of being shut down. Chris Rock, instead, hopped on a bicycle, and Ice-T chased him on foot.