The studio initially suggested to the producers that John Denver reprise his role as Jerry Landers from the first film and continue that film's story, but this suggestion was ignored as the producers thought that it would be funnier and more original if the sequel contained entirely different characters. With the exception of George Burns in the titular role, none of the original film's characters appear in this film or in the next one, "Oh, God! You Devil" (1984).
According to the book "Close But No Cigar" by Melissa Miller, four of the five credited screenwriters for this film were George Burns' personal comedy writing team, whom he brought in to try to salvage the floundering script. Most
critics agree that they were not at all successful in doing so.
This film presages the story of Samantha Smith, a young girl who became known as " America's Youngest Diplomat" for writing to Soviet leader Yuri Andropov to ask about nuclear war in 1982. Both sides of the Cold War used her letter asking about peace and nuclear fears to promote peace, and Smith traveled around the world talking about disarmament. Her original letter even encouraged leaders to "think God" with her statement, "God made the world for us to share and take care of." Sadly, Smith's
story didn't end as well as the film did: she died at the age of 13 in a plane crash.
The original working title of this film was "Oh God! Oh God!"