This film is comprised of half of the footage shot for Toxic Avenger Part II.
Rick Collins said that during production, three child extras were scared of him in the Devil make up. When he convinced the first two children that it was only make up and even offered for them to feel it, they did and were no longer scared. However, when the third child tried to feel it, he did the Devil's scream and since then, he has admitted he felt bad about doing it.
One scene was filmed inside an actual video store instead of a set.
The subtitle "The Last Temptation of Toxie" is a tongue-in-cheek play on Martin Scorsese's The Last Temptation of Christ (1988). This spoofing title hints at the plot: in the film, Toxie is tempted by a Faustian bargain (working for an evil corporation for money) much like Christ's temptations, and even faces the Devil himself.