A Terrible Night may have been inspired by a series of comic magic lantern slides, published in the 1880s by the English firm of Bamforth & Co Ltd. The film predates Méliès's famous use of cinematic special effects; the first known Méliès film with camera effects is The Vanishing Lady, made later in 1896. Rather, the giant bug is a simple pasteboard prop controlled with wire.
The film was made with the Méliès-Reulos portable camera in the open air, in the garden of Méliès's home in Montreuil, using natural sunlight and a cloth backdrop. Méliès himself played the man attempting to sleep.