Eric Idle said that this is one of the worst movies he'd ever done, but later said "the best times can be on the worst movies and vice versa, e.g., Yellowbeard, which I wouldn't have missed for the world."
Final theatrical movie of Marty Feldman (Gilbert). He died during production on December 2, 1982 of a heart attack.
This movie was inspired by Keith Moon, drummer of the British rock band The Who, who was a personal friend of Graham Chapman. Moon wanted to play Yellowbeard, but could not due to ailing health. (Moon died in 1978). Chapman once recalled that Moon lived like a pirate with his wild ways. The character in this movie called Moon (Peter Boyle) was named after him as a tribute.
According to the book "Yellowbeard: Highjinks on the high seas", Sting wanted to play the lead role of Dan, but Hollywood executives thought the movie was becoming too English and mandated an American actor be cast and in the end this was Martin Hewitt who said, "Sting should have had my part. For crying out loud, I would have hired Sting over me any day."
Yellowbeard is based on and is a parody of the infamous, murderous real-life pirate Edward "Blackbeard" Teach. Blackbeard wove hemp into his hair, and lit it to frighten his prey, as Yellowbeard does in this movie. Also, Teach was known for murdering the target ships' crew in horrific ways if the ship resisted in any way.