Alice, having survived the previous installment of the Nightmare series, finds the deadly dreams of Freddy Krueger starting once again. This time, the taunting murderer is striking through the sleeping mind of Alice’s unborn child. His intention is to be “born again” into the real world. The only one who can stop Freddy is his dead mother, but can Alice free her spirit in time to save her own son?

Dream demon 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 friend Alice. Alice soon realizes that Freddy is taking advantage of that unknown power to pull a new group of children into his foul domain.