A police chief in the war-torn streets of Los Angeles discovers that an extraterrestrial creature is hunting down residents - and that he is the next target.
Freddy Krueger is resurrected from his apparent demise, and rapidly tracks down and kills the remainder of the Elm Street kids. However, Kristen, who can draw others into her dreams, wills her special ability to her new friend, Alice.
Arriving in the small town of Fallwell, Massachusetts to claim her inheritance, horror hostess Elvira receives a less than enthusiastic reception from the conservative locals -- amongst them, her sinister uncle Vincent, who, unbeknownst to her, is an evil warlock.
During a hallucinatory incident, Kristen Parker has her wrists slashed by dream-stalking monster, Freddy Krueger. Her mother, mistaking the wounds for a suicide attempt, sends her to a psychiatric ward, where she joins a group of similarly troubled teens.
