Visible crew/equipment: At the end of the film, the burnt head and body of Chucky are thrown across Karens bedroom, below the window. The body twitches, then suddenly jumps up. The body's (one) leg actually doesn't touch the ground! The body rises with no real support, so if you look under the body, you can see a black rod/sheet (coming from through the carpet), pushing the burnt body up. (01:21:50)
Continuity mistake: When Chucky is finally shot at the end of the film, his body falls to the floor, slanted on it's side and then dies. Yet seconds later when Andy looks at the remains of Chucky, Chucky's body is now sitting upright against the wall. (01:22:05 - 01:23:10)
Visible crew/equipment: When Andy and the doll gets out of school, the whole film crew is reflected in the doors.
Plot hole: Andy is suspected of having killed Eddie Caputo, because he was at the scene when Eddie's house blew up and Eddie was killed. But there are glaring things that go unquestioned: None of the cops seem to think it's strange that a six-year-old kid would travel by himself so far to some random house in order to blow it up. The South Side neighborhood where Eddie lives is halfway across the city from Andy's apartment. How did Andy know where Eddie lived? How do the cops think he even knew Eddie at all? None of them address this most puzzling problem.
Suggested correction: The police believe Andy to be insane (hence why he is sent to a mental institution instead of juvenile hall), and thus do not believe his choice of victims to be in any way rational.
Also, as unlikely as it is that a six-year-old child could (or would) travel halfway across the city to murder a random person, the possibility that a child's doll came to life and carried out the act was considered far too outlandish at that point in the plot.
Suggested correction: We don't see the entire investigation. We just see the cops holding Andy then taking him to a psychiatric clinic. Chances are they were asking those questions and we just didn't see it because it's not important to the plot. Regardless, the cops have every reason to believe Andy either knows about or was partly responsible for the murders considering he keeps showing up at murder scenes. There's only so many conclusions you can draw, even if they don't make sense.
Continuity mistake: At the end, when Andy's mom shoots Chucky for the first time, it doesn't really faze him; he just keeps walking. But in the bedroom, when she shoots him through the heart, the bullet impact causes him to fly several feet through the air.
Suggested correction: Because shooting him in the heart is the only way to kill him, also when Mike Norris shot him he got sent flying, but when his body parts get shot off he still walks.
It has to be a human heart in order for him to die, that's what the man told Karen.
Revealing mistake: When Chucky follows Andy home and drops from the chimney and kicks the cover off, its obvious that this isn't Chucky and its a real person dressed as Chucky.
Plot hole: How would little Andy know how to get from the mental hospital to his house all alone?
Suggested correction: Maybe he asked around or took the bus. If he can get to Eddie's with Chucky's help, then this probably wouldn't be a problem for him, or he just ran around until he saw it. Just because we don't see it, doesn't mean it's a plot hole.
Revealing mistake: Look very closely at the way Maggie is knocked backwards after being struck with the hammer. It seems as if she is deliberately throwing herself backwards, which also means they may have used reversed footage.
Other mistake: The Good Guy dolls are said to be manufactured by the Play Pals toy company. Later, when Karen picks up the box that Chucky came in, on the bottom left corner of the box are the words Play Partners Toys.
Continuity mistake: When Karen throws away Chucky after he bites her, behind her are 4 pokers that become 2.
Other mistake: Being struck on the forehead with a toy hammer would not cause someone to be knocked off balance to the point that they are flying backwards the 15-20 feet or so we see with Maggie.
Other mistake: In the scene where Maggie is carrying Chucky into Andy's room with Andy, you can see the arm of the doll has popped out of it's socket in one shot, as the material of the shirt is stretched far beyond it should be. It is back to normal in all other shots.
Continuity mistake: The drink Andy makes changes colour.
Factual error: The movie appears to take place in the winter but when Andy goes into his mom's room with breakfast at 6:30 in the morning it is light outside. At that time of the day it would still be dark outside.
Factual error: Chucky blows out the pilot light in Eddie Caputo's house and, mere minutes later, there's enough gas for a single gun blast to then cause the whole house to explode. 1) It would take hours and hours for enough gas to fill up that house to present a safety issue; 2) By that time, Eddie would have unmistakably smelled it; 3) A gun blast wouldn't be enough to ignite that gas anyway.
Continuity mistake: When Andy makes his mother breakfast in bed he brings in a glass of orange juice but over the course of the scene of him and his mother talking it changes to a much lighter colour. It could have been switched with a glass of milk or cloudy lemonade but it's probably just the same orange juice that's been watered down over multiple takes.
Audio problem: Towards the end just before Chucky is shot "dead", there's one point when he says something but his mouth isn't moving. Look at the last sentence very carefully to see.
Continuity mistake: After the cop helps Karen she has a bunch of snow on her back which decreases between shots.
Continuity mistake: While Andy is playing with Chucky and the wooden car, there are some tools that disappear and reappear between shots.
Other mistake: When Charles enters the toy store, he shoots the the lock and misses, however the door opens right away.