Plot hole: In the end of the film it is heard the police want to exhume the body of Charles Lee Ray from his grave site in New Jersey. Now when Chucky and the crew get to the grave site they find and kill a coroner who is digging up the body. He is the only one there at 1am, by himself, a lonely coroner without any police officers, after all this is a police investigation and I doubt the cops would have him there alone. Then right at the end the Detective who is hunting them arrives. Now he is a cop from Lockport, about six states away. A. Why did he drive all that way to see the body? B. A cop from all the way down there shows up but no new Jersey cops are at the scene?
Continuity mistake: When Chucky kills the coroner there is a generous amount of blood splashing on the gravestone. But in the next shot we can see that he is standing next to the gravestone. Chucky shot the coroner in the back of the head since he was looking in the other direction and is falling on his face, so there should be no blood on the gravestone.
Other mistake: In the beginning, when Tiffany has just had her soul put into the bride doll, she is reading the "Voodoo for Dummies" book and Chucky tells her that the page she is looking for is in Chapter Six, page 217. When she flips to it, the camera shows the top of the page before panning downwards. On the top of the page it very clearly says "Chapter Eleven". (00:31:45)
Revealing mistake: When the gay friend finds the dead chief in the van, he gets out and runs in front of a lorry. Watch closely and you'll see the blood starts flying before he has even disappeared behind the truck. (01:04:05)
Continuity mistake: In the first film, when Charles Lee Ray died and the Police Officer found him, his eyes were open, his mouth closed, his face clean, clothes in perfect condition, and head staring straight up into the sky. When Chucky holds up the picture of him dead in this one, his eyes are shut, his mouth is open (and there's blood coming out of it), his face is dirty and facing to the side, he's missing parts of his clothing (e.g. his tie), and his shirt is now wide open. His body is still in the same place it's was when he died, because the floor is the same, and there's doll boxes around him.
Plot hole: When Tiffany locks Chucky in the wooden cage, (The "Nursery" she calls it) you can see her lock the top. The problem is that the lock is put on in such a way that it would not actually keep Chucky in the cage. It is on the top of the cage, but doesn't connect with the cage at any other part. It simply wouldn't work.
Continuity mistake: When the cop finds the dead Tiffany doll shortly before she is giving birth to the baby doll there is neither blood on her dress nor a hole in it. But in the first shot after she was stabbed she is lying on her back and her dress has blood all over it and a pretty big hole in it.
Continuity mistake: Tiffany drops Chucky in a prison-like playpen she calls the "nursery" and closes the cage, causing a folded purple blanket over the hood to slide back, then locks the cage to the hood. In the full-view shots, the blanket is up to the lock, and in the close-up shots of Chucky, the blanket is against the wall.
Continuity mistake: There is a scene where Jade, Jesse, and the two dolls pull up to a wedding chapel. We see them pass a neon statue of what appears to be the Virgin Mary. While Jade and Jesse are inside the chapel getting married, Tiffany looks out of the windshield and comments on how beautiful the statue is. Apparently Jesse backed the van up about 50 feet before parking it, and the chapel apparently moved with him.