The film was financed by Live Entertainment, owned by Jose Menendez. The Thursday before production was to commence, writer/director Ron Oliver went to dinner with the Menendez Family, including brothers Erik and Lyle. The following Monday, Ron learned production had been delayed due to the murders of Jose and Kitty Menendez. Filming was pushed back by two weeks.
Ron Oliver wrote both screenplays for "Hello Mary Lou: Prom Night II" and "Prom Night III: The Last Kiss". Both scripts were written around the same time, before either had gone into production, in hopes that the first one would do well enough to warrant a sequel. At the time, the scripts were titled "The Haunting of Hamilton High" and "The Haunting of Hamilton High 2", because they initially weren't intended to have any connection to the original "Prom Night".
Ron Oliver was selected to write and direct several episodes of "Are You Afraid of the Dark?" after the creators of the show saw this movie and thought he would do well working with a low budget.
Lisa Schrage, who portrayed Mary Lou Maloney in "Hello Mary Lou: Prom Night II (1987)", said she was never contacted to reprise her role in this film, despite critical praise for her performance. She was replaced by Courtney Taylor.