The Torch puppet (created in El juguetero del diablo II (1990)) is seen on the cover of the VHS/DVD case, but is not seen in any of the movie. This was due to economic reasons, as the makers could only afford the FX and a Fire Marshall for one entry. Torch does, however, appear in El juguetero del diablo 5 (1994).
Upon returning for the role of Andre Toulon, Guy Rolfe refused to leave his hotel room and participate in the film unless producer Charles Band personally slid a cash payment under his hotel room door.
This and El juguetero del diablo 5 (1994) were originally intended to be one entire theatrical movie. Full Moon CEO Charles Band was slated to direct and the project was titled "Puppet Master: The Movie."
Was originally meant to be Puppet Master vs. Demonic Toys before the idea of the Decapitron and the Totems came along.