[2] Produced by MGM/UA Family Entertainment and Metro-Goldwyn-Mayer Animation, it was directed by Paul Sabella, with Larry Leker, previously involved in writing the story for the first film, as co-director.

Dom DeLuise reprises his role from the first film, alongside new cast members Charlie Sheen, Ernest Borgnine and Bebe Neuwirth, respectively.

Upon arrival in San Francisco, Charlie and Itchy attempt to indulge in their old habits, but they discover that they are ghosts, and therefore unable to interact with the physical world.

At a tavern where Charlie is enchanted by a beautiful and charming Irish Setter named Sasha La Fleur, Carface appears in a corporeal form granted by a red dog collar created by Red, an elderly dog fortune teller who gives Charlie and Itchy equivalent collars effective for a single day.

Charlie sees the horn being taken into an SFPD police station and recovers it, but in his reluctance to return to Heaven, he hides it in a lobster trap.

After David's street performance ends in failure, he finally reveals that he believes that his father and stepmother, who are expecting a new baby, will care less for him once it is born.

Burt Reynolds, Vic Tayback and Melba Moore are replaced by Charlie Sheen, Ernest Borgnine and Bebe Neuwirth, but three characters were written out of the sequel.

[7] Sheena Easton's Sasha and George Hearn's Red in particular have been held up as examples of well-done voice acting carrying an animated film.

[8] Common Sense Media, on the other hand, gave it positive reviews because of some improvement over its predecessor with the plotline and some modifications with Charlie's concept.