According to Wes Craven, the film was severely cut for an R-rating. It took around 13 submissions to the MPAA to receive an R instead of an X rating. Some of the scenes that were cut include: Pinker spitting out fingers that he bit off from prison guard, longer and more graphic electrocution of Pinker, and longer scene of possessed coach stabbing his own hand.
Originally envisioned as a series, in the vein of Wes Craven's "A Nightmare on Elm Street (1984)," but after the lukewarm box-office reception, the idea was dropped.
When shooting the scene where Jonathan wades into the lake, Peter Berg suffered from hypothermia due to the extreme cold temperatures.
Wes Craven allegedly conceived the story, as well as the character of Horace Pinker, as a response to the diminishing quality of the sequels to A Nightmare on Elm Street (1984). Craven had a hand in writing and producing A Nightmare on Elm Street 3: Dream Warriors (1987), which he saw as his way of finishing that series.
Mitch Pileggi appeared in character as Horace Pinker to promote the film on a special Halloween episode of MTV's Headbangers Ball (1987).