The popularity of the name Damien plummeted as a result of this movie and its predecessor.
William Holden was the original choice to star in the first film, The Omen (1976), but turned it down as he did not want to star in a picture about the devil. Gregory Peck was selected as his replacement. "The Omen" went on to become a huge hit and Holden made sure he did not turn down the part in this sequel.
When Mike Hodges was the director of the film, his attitude was pretty much "strictly business" towards the cast and crew, which may have led to his dismissal by producer Harvey Bernhard who then hired Don Taylor and the production shut down for about a week so Taylor could get up to speed. Once he was on set, the atmosphere was a lot more relaxed and energetic with Taylor being loose and funny with the cast and crew to keep things lighter.
Don Taylor replaced director Mike Hodges as a result of creative differences, but the few scenes Hodges directed were kept, like the scenes at the factory and at the military school, and also the dinner where Aunt Marion shows her concern about Damien.