Picking up where the original Nightmare left off, a group of children at a local hospital face Freddy Krueger. One of them is Kristen. Working with a doctor assigned to the case, the kids realize their special abilities within the nightmare world. When Freddy captures one of them, they lead a rescue attempt into Krueger's domain, in hopes of putting his spirit to rest once and for all.
A psychiatrist familiar with knife-wielding dream demon Freddy Krueger helps teens at a mental hospital battle the killer who is invading their dreams.
