Plot hole: In the factory we see the machine that adds the hair to the Dolls it "punches" the doll at standing level. Andy hits the reverse button and they watch a doll go backwards. A few moments later Chucky appears on a cart and now the machine "punches" Chucky to the cart. 2 Errors -1 How did Andy and Kyle not see Chucky on the cart right in front of them. 2. What made the machine go low enough to stick Chucky to the cart.
Suggested correction: 1. Andy and Kyle were looking away, hence they didn't see Chucky. But then, Kyle turns and sees him. 2. We are to presume that the punch machine goes down until it is stopped by the doll it's meant to be "punching" into. So, it just descended until it reached Chucky and the platform he's on. (Additionally, the machine also seems to be malfunctioning given it goes into a sort of overdrive.)
Continuity mistake: In two different places in the movie, Andy's foster parents have the same argument with the EXACT SAME dialogue, about Andy being too much to handle. Obviously, the director decided to try the dialogue in two different settings, and both scenes were accidentally left in.
Visible crew/equipment: In the very last part of the film where a new mould of a doll face is made and it grins (obviously showing there's a sequel coming), wait a few seconds after he grins and look in the background in the right corner. You can very clearly see a stage worker go right on camera. In fact, one of the frames that shows him freezes for a little while as the credits start to roll. Only in the extended TV version.
Visible crew/equipment: At the end, when Chucky looses his hand, you can see the puppeteer's hair at the bottom left corner of the screen.
Visible crew/equipment: When Chucky says "We're home!" and knocks Andy out at the toy factory, before trying to transfer his soul, watch closely. Right as the shot is about to end, you can see some of the animatronic cables, the puppeteers use to control the Chucky doll, behind him. Additionally, you can see a crew-member's hand start to reach up at the bottom left corner right before the shot cuts. (Presumably to help slow down actor Alex Vincent and the Chucky doll's fall for safety.)
Continuity mistake: In the opening montage, when Chucky is rebuilt, they show his shoes being tied. About a minute later, when the CEO and his assistant enter the room, you can see one of the tech guys tying his shoes in the background... even though they were already tied.
Continuity mistake: The first shot of the movie is an extreme closeup of Chucky's eye. Two shots later, you get a view of his whole face... and his eye is completely different. The color and design is slightly different, and the charred plastic around it doesn't match. The scene was shot with two different props (an oversized eye for the extreme closeup as confirmed in the commentary, then a regular sized doll-head for the next shot), and they didn't quite match.
Revealing mistake: When Grace falls to the floor, copies of her face keep pouring on her. Two are shown up close pouring out, and they are different from each other. One has a big hole of cracked glass covering her right eye and the other one shows her right eye without the hole at all. One copy was taken before she fell so two different looks over her eye is not possible.
Continuity mistake: When Kyle pulls her car in front of the big truck with all the newspapers in back, the car is first shown curved at an angle, but after a camera change to a different angle, the car looks straighter in relation to the truck and not blocking it in the same area.
Visible crew/equipment: In the scene where Andy's foster parents are talking about Chucky and the camera slides from their room to Andy's, you can see the camera's reflection in one or a few pictures on the wall.