This and Puppet Master 5 (1994) were originally intended to be one entire theatrical movie. Full Moon CEO Charles Band was slated to direct and the project was titled "Puppet Master: The Movie."
The Torch puppet (created in Puppet Master II (1990)) is seen on the cover of the VHS/DVD case, but is not seen in any of the movie. This was due to economic reasons, as the makers could only afford the FX and a Fire Marshall for one entry. Torch does, however, appear in Puppet Master 5 (1994).
Was originally meant to be Puppet Master vs. Demonic Toys before the idea of the Decapitron and the Totems came along.
Upon returning for the role of Andre Toulon, Guy Rolfe refused to leave his hotel room and participate in the film unless producer Charles Band personally slid a cash payment under his hotel room door.