During the initial release, a crowd of protesters formed around the entrance to MGM, calling for a ban on the film. They claimed it would incite violence in children. Local news reporters were broadcasting live from the scene, and the producer David Kirschner was watching, disturbed by what he saw. Jeffrey Hilton, who worked with Kirschner at MGM, said he could defuse the situation in ten minutes. Hilton went down and spoke to the ringleader and then the group disbanded, to the chagrin of the newscasters. Hilton never specified whether it was threats or diplomacy that saved the day.

Original writer Don Mancini stated in an interview that his original script toyed with the audience a bit longer, making them wonder if young Andy was the killer rather than Chucky. This idea was used by Kevin Tenney in Pinocchio's Revenge (1996).

The working title for the film was "Blood Buddy," which seems to confirm the widely believed notion that the film was inspired by Hasbro's My Buddy toy doll, which also dressed in denim overalls and a striped shirt.

The My Buddy doll line has never recovered from the first Child's Play (1988) movie.

The film was released on the same date (November 9, 1988) as the opening scene, when Charles Lee Ray transfers his soul into the doll.

One of the inspirations for the Good Guys dolls was the interactive doll, Corky. Corky's voice actor Edan Gross was even used as Chucky's "normal" voice.

(Director Cameo) Tom Holland: Voice of the costumed host of the Good Guys program Andy is watching at the beginning.

The film used various ways to portray Chucky, including RC animatronics and little people or child actors. Various animatronics and cosmetics were used for every scene throughout the movie, Chuckie's cosmetics transition from looking toy-like to a more human look. The film created multiple Chucky animatronics such as a flailing tantrum Chucky, a walking Chucky, and a stationary Chucky. The animatronics face was controlled by a remote control through a rig that goes on one's face and captures facial movements.

The toy shop used in the opening scene was actually a Chinese restaurant that closed down in Chicago, on the corner of Wabash and Van Buren. Chris Sarandon even says the name of the street corner when calling for backup.

In the original script the director wanted Charles Lee Ray as Andy's father.