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.
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.
Alice finds the deadly dreams of Freddy Krueger starting once again. This time, the taunting murderer is striking through the sleeping mind of her unborn child.
