At a private party held in Mumbai, Shemaroo Entertainment and Vishal Bhardwaj, who had previously produced Ishqiya (2010), announced the sequel with the same cast and crew.
It was later announced that Vidya Balan, the heroine of Ishquiya, would not feature in the sequel. In April 2012, Madhuri Dixit signed on to play the role of Begum Para, the grey character at the center of the film; it was Dixit's first role after moving back to India from the US in November 2011. The two male leads Naseeruddin Shah and Arshad Warsi were retained from the original. The role of supporting actress first was offered to Asin Thottumkal but, she refused to work in a supporting role, and she said in one interview that she thought that the role is not very attractive and therefore she rejected it. Kangana Ranaut then signed Dedh Ishqiya and said she was going to start shooting soon. However, in December 2012 she was dropped, supposedly due to persistent date issues. She was replaced by Huma Qureshi. Arshad Warsi stated that he was paired with Huma and Madhuri was paired opposite Naseeruddin Shah.
The shooting was initially scheduled to start in September 2012, but was shifted to November, and was further postponed even at that time, due to issues related to Kangana Ranaut's desire for an expansion of her role. Shooting finally began on 27 February 2013, after she was replaced with Huma Qureshi. Mahmudabad palace near Barabanki was spruced up for the shoot. The "First Look" of the film was released on 25 October 2013 and the trailer was released on 8 November 2013.
Madhuri Dixit performed a mujra to the song Apne Karar Mein. The dance was choreographed by Pandit Birju Maharaj.