Originally, Universal wanted to make a sequel based on Bram Stoker's short story 'Dracula's Guest' and negotiated with Stoker's widow Florence. During the talks between the two, it was discovered that Bram Stoker had not complied with one requirement of the U.S Copyright office with his novel 'Dracula', which rendered it public domain in the United States. Because Florence wanted more creative control over the sequel, and Bela Lugosi wanted more money to reprise the role of Count Dracula, Universal instead hired John L. Balderston to write a new story.
Completed for $278,000 it was one of Universal's most expensive productions of the 1930s.
Despite Bela Lugosi not appearing in the film, there are some existing photos of him and Gloria Holden on the set during production.
Originally, Jane Wyatt was cast as Lili, but Universal presumably cast Nan Grey because she was a blonde giving contrast to the leading lady Gloria Holden. Movie producers, especially in the Golden Age of Hollywood, generally preferred that actresses have two different hair colors when a villainess is involved, to give distinct contrasts, and of course, Wyatt was always a brunette.