After completing the pilot film for the series, producer Sam Katzman was able to convince former Dead End Kids Bobby Jordan and Leo Gorcey to join the series. Katzman also brought in Gorcey's younger brother David, and former Our Gang star and Vaudeville entertainer "Sunshine Sammy" Morrison. Morrison had already known Katzman prior to joining the series.
While this film is technically a sequel to the previous film, some unexplained changes are made (namely the addition of "Muggs", "Scruno", and "Buster"). Most of the cast from the previous film did not return. Bobby Jordan replaced Harris Berger in the role of "Danny", and would retain the role for a large portion of the series' run. Jack Edwards was originally slated to return as "Algernon Wilkes", but immediately declined after being offered a part in another movie. Eugene Francis took his place.
Hal E. Chester returned, but as his character was killed off in the previous film, he plays a different character here. This would be his last East Side Kids film.
In addition to Chester, Frankie Burke, Donald Haines, and Dave O'Brien all returned, and each reprised their role from the previous film. This would be Burke's last East Side Kids film. After his departure, the character of "Skinny" was given to Haines, while "Peewee" was given to David Gorcey.