Director Sam Firstenberg said in an interview that his "first decision right away was not to follow in the steps of the Hong Kong flicks, but rather to approach the movie as a straight Hollywood action movie with a martial arts slant, and the Ninjitsu mysticism the icing on the cake."
Producer Menahem Golan wanted the story for this sequel to take place in America whereas the first film Enter the Ninja (1981) took place in the Philippines.
Despite being the second entry in the Ninja trilogy, this film has nothing to do with the original film Enter the Ninja (1981) besides the fact it stars 'Sho Kosugi' (but playing a different character).
The film was originally going to be totally filmed in Los Angeles but the expenses to film there kept growing (city permits, mandatory police officers, fire marshals, location fees, parking, etc). The Utah Film Commission was trying to get Cannon Films to start producing films in their state and a representative promised no permits, location fees, or union deals as well as lower salaries for local crews. This is why the films production was moved to Salt Lake City, Utah.
The total shoot for the film was 8 weeks (48 days).
The final rooftop fight scene between 'Sho Kosugi' and the villain took two weeks to shoot. Director Sam Firstenberg in an interview said this is because there were many effects, pyrotechnics, mechanical rigging, safety considerations, elaborate camera positioning (including hanging 20 stories high outside the building), and helicopter shots.
Menahem Golan (director of the first film Enter the Ninja (1981)) was attached to direct early in pre-production.