The film uses a metafictional, film-within-a-film structure in which the original Grave Encounters is treated as real found footage that fans investigate, blurring the line between fiction and reality.

Sean Rogerson reprises his role as Lance Preston but plays a fictionalized version of himself, since within the sequel's story he is the actual actor from the first 'found footage' film.

The Vicious Brothers, the film's real-life writers, appear as themselves in the movie, portrayed as interns of producer Jerry Hartfield who were not directly involved in the original film's events.

Several actors from the first Grave Encounters film, including Merwin Mondesir, Mackenzie Gray, Juan Riedinger, and Ashleigh Gryzcko, make uncredited cameo appearances playing themselves.

Production began in late 2011, and unlike the first film which the Vicious Brothers directed themselves, this sequel was directed by John Poliquin while the Vicious Brothers only handled writing duties.

The film ends with a black screen displaying the coordinates '49, 14, 122, 48,' which when entered into Google Maps correspond approximately to the real-life Riverview Hospital in British Columbia, the actual filming location standing in for the fictional Collingwood Psychiatric Hospital.

Despite being panned by critics, with a 9% score on Rotten Tomatoes, the film was a commercial success, grossing over $8.2 million against a $1.4 million budget, and some critics specifically praised Sean Rogerson's performance.

A third installment titled Grave Encounters 3: The Beginning was announced by the Vicious Brothers in May 2015 but never entered production, while an American reboot starring and produced by Justin Long alongside Kate Bosworth and the Vicious Brothers was announced in September 2025.