Reviews of the series were generally mixed, and it was cancelled after a relatively short period of time. The series' demise may have been played in part due to complaints concerning the violence in the series, which was featured in many other syndicated shows at the time such as War of the Worlds and Friday the 13th: The Series, both of which, like Freddy's Nightmares, were cancelled in 1990.

The series was produced by New Line Television, producers of the film series. It was originally distributed by Lorimar Television. However, Warner Bros. Television would assume syndication rights after acquiring Lorimar (New Line and Warner Bros. are now part of Time Warner).

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