Darkman and Durant return and they hate each other as much as ever. This time, Durant has plans to take over the city's drug trade using high-tech weaponry. Darkman must step in and try to stop Durant once and for all.
A mysterious woman comes in to town and inhabits the local haunted mansion, making everyone wonder if she's a witch or "The Grey Lady".
Darkman, needing money to continue his experiments on synthetic skin, steals a crate of cash from drug lord Peter Rooker...