Adapted from the Broadway musical "Panama Hattie", which opened at the 46th Street Theater in New York October 30, 1940 and ran for 501 performances. Ethel Merman played Hattie, Betty Hutton was Flo, Rags Ragland originated his movie role, Arthur Treacher played the butler, James Dunn was Bullet, and future film stars June Allyson, Lucille Bremer, Betsy Blair, Doris Dowling and Vera-Ellen were dancers. Allyson was also Hutton's understudy.
The "Good Neighbors" song was based on the 1933 U.S. "Good Neighbor Policy" introduced under President Franklin D. Roosevelt. Its aim was to strengthen relations between the U.S. and the countries of Latin America.
Although Ethel Merman was passed over for the role of Hattie in this film, she later played the role in the TV production Panama Hattie (1954) co-starring Art Carney and Ray Middleton.
When Hattie (Ann Sothern) first shares a scene with all three sailors (Red Skelton, Rags Ragland, and Ben Blue) Red's character asks her if she wants to go movies with them. Rags Ragland's character says, "Yeah, it's a swell picture. 'Maisie, the Beautiful Laundry Girl'." Ann Sothern replies, "Ah, she gives me a pain." Ann Sothern was the star of all the series of Maisie movies, up to, and past that point. "Maisie, the Beautiful Laundry Girl" is not the title of one of those movies, but was made up just for this film.
Additional scenes and re-takes were directed by Roy Del Ruth and Vincente Minnelli after original director Norman Z. McLeod left the film.