"Prom Night" was filmed in Toronto in late 1979 on a budget of $1.5 million. Distributed by AVCO Embassy Pictures, it premiered in the United States in July 1980 in select cities, and was an immediate financial success. Its release platform expanded to major cities such as Los Angeles and New York in August, where it was again met with high box-office receipts. At the time, the film was AVCO Embassy's most financially successful release, breaking weekend records in Los Angeles, Philadelphia, and New England.