Paramount Pictures initially planned a television series based on the first Beverly Hills Cop film, but Eddie Murphy turned it down and instead agreed to do a theatrical sequel.

The film was originally written to be set and filmed in London and Paris, but the script was rewritten after Eddie Murphy expressed reluctance to film outside the United States.

Director Tony Scott was hired by producers Don Simpson and Jerry Bruckheimer largely due to the success of his 1986 blockbuster Top Gun, even though he was not primarily known as a comedy director.

Ronny Cox was intended to have more screen time as Captain Bogomil, but his availability was limited because he was also filming his role in RoboCop at the time.

Filming ran for 135 days, from November 10, 1986, to March 25, 1987.

Editor Billy Weber recalled that original director Martin Brest had passed on the sequel, and that Tony Scott's first cut played as a straight action movie rather than a comedy, prompting the producers to rewrite the script and shoot additional jokes after a test screening.

The film introduced George Michael's sexually explicit song 'I Want Your Sex,' which reached number 2 on the Billboard Hot 100 despite controversy, and it later won the Golden Raspberry Award for Worst Original Song even though it went platinum.

The version of 'Hold On' heard in the Playboy Mansion confrontation scene is sung by Keta Bill, but the soundtrack album instead features a different version with different lyrics performed by Corey Hart.