In the second installment, unrelated to the first movie, the Ghoulies hitch a ride with a carnival and end up hiding in an amusement park funhouse called “Satan’s Den” which becomes a smash hit when visitors believe the little demons are part of the attraction – that is, until people start falling victim to the evil creatures. The film stars Damon Martin, Dale Wyatt, Royal Dano, Phil Fondacaro and J. Downing.
The film was again produced by Empire Pictures and directed by Charles Band‘s father Albert Band. It was also the last entry to have any involvement from Charles Band, as he sold the rights to Vestron Pictures to save Empire Pictures, which was struggling financially at the time. Ghoulies and Ghoulies II were released as a double feature DVD from MGM Home Entertainment in 2003 and as a double feature Blu-ray from Scream Factory in 2015. While both releases include theatrical trailers, the Blu-ray special features include commentaries, interviews, and still galleries. In 2017 Austrian company NSM Records released Ghoulies II on Blu-ray in a fully uncut R-rated version, marking the first time the movie had been released uncut since the original cast and crew premiere.