A sinister secret has been kept in the basement of an abandoned Los Angeles church for many years. With the death of a priest belonging to a mysterious sect, another priest opens the door to the basement and discovers a vat containing a green liquid. The priest contacts a group of physics graduate students to investigate it. Unfortunately, they discover that the liquid contains the essence of Satan himself, and they also discover that he will release HIS father - an all-powerful Anti-God! The liquid later comes to life itself, turning some of the students into zombies as the Devil comes forward to release his father. Will these students be able to stop him?
Picking up where the original Nightmare left off, Nancy has grown up and become a psychiatrist specializing in dream therapy. She meets a group of children at a local hospital facing Freddy Krueger, the same demon she once encountered in her sleep. One of them is Kristen, who has the power to draw other people into her dreams. Working with a male doctor assigned to the case, Nancy helps the kids realize their special abilities within the nightmare world. When Freddy captures one of her charges, she leads a rescue attempt into Krueger's domain, in hopes of putting his spirit to rest once and for all.
A young man, named Ash, takes his girlfriend Linda to a secluded cabin in the woods where he plays back a professor's tape recorded recitation of passages from the Book of the Dead. The spell calls up an evil force from the woods which turns Linda into a monstrous Deadite, and threatens to do the same to Ash. When the professor's daughter and her entourage show up at the cabin, the night turns into a non-stop, grotesquely comic battle with chainsaw and shotgun on one side, demon horde and flying eyeball on the other.
A family-values man named Jerry Blake marries widows and divorcées with children in search of the perfect family. As soon as his new family members show signs of being human and not robots who will march unquestioningly to his tune, his dreams of domestic bliss begin to crumble, and he kills them. Then he alters his appearance, assumes a new identity, and skips to another town to begin the deadly ritual all over again. He marries Susan Maine, who sees him as the ideal surrogate father for her teenage daughter Stephanie, and he is soon up to his old tricks when she proves to be too much of a troublesome teen to handle.