After hearing that mystical toymaker Andre Toulon has managed to create a troupe of sentient, living puppets, Nazi underling Dr. Hess sets his sights on exploiting Toulon's powers for the glory of the Reich.
While on a stakeout, Judith Gray, a beautiful, tough cop, is trapped inside a warehouse full of toys that have been awakened to murderous life by a strange child of darkness.
Blade, Tunneler, and Pinhead go toe-to-toe with a team of terrifying, gremlin-like creatures known as "Totems" that are sent by the Egyptian demon Sutekh to recapture the magic stolen by Toulon.