A story of zombies eating freshly killed humans.
A voiceover narrator warns the viewer that the film we are about to watch contains scenes of stomach-churning gore. The visual reveals an average looking man going into a theater and sitting down. Corresponding with the narration, he pulls out a handkerchief and gags into it. The narrator explains that this shot, along with a buzzing warning sound, will be inserted into the film before all the gore scenes, and that it is intended to allow the viewer to look away in time if they have a weak stomach. The film then begins after the credits, which are superimposed over images of a graveyard.
In a funeral home called The Happy Halo, we see Bill, a mortician, at work preparing a freshly delivered corpse for viewing. The funeral director asks Bill is he will stay late to work on an "emergency" case that's being delivered that evening, the deceased victim of what seems to be a bear attack. Bill agrees. The funeral director, who is more than a little bit creepy, stumbles through the graveyard, gets into his hearse, and drives around for a long time, speaking to himself in a voiceover narrative. Intercut with this are scenes of Bill slicing into the corpse he's working on. For some reason, the funeral director returns and helps Bill put the finishing touch on the corpse: cotton balls to make the cheeks seem more full.
From here, we see two young couples taking a day trip in a power boat. After boating to an island, where they swim and make out on blankets, they decide what to do next. Having grown tired of the local rock concert scene, Richie and his girlfriend Julie want to spend the night in a graveyard. Alan agrees, but his girlfriend Lisa, Richie's sister, isn't into the idea. Richie says it will be a wild time, and he has brought along some marijuana that he thinks will help them enjoy the creepy experience more. The three of them drag Lisa to an abandoned graveyard, where they find a vault that has been left open.
When they go inside the vault, it starts to rain, so they decide to hang around for a while. Richie gets the idea to perform a Satanic ritual. Kneeling around a coffin, the four of them join hands while Richie starts his incantation. At first nothing happens, so Richie turns a nearby crucifix upside-down and reissues the incantation.
This time, something happens. All around the vault, corpses begin to rise out of the graves, and they descend on the group. Pushing their way into the vault, the zombies kill Julie and seriously injure Richie. Alan and Lisa manage to escape with the wounded Richie, while the ghouls devour Julie. Lisa and Alan take Richie to a hospital, where doctors perform surgery on him, but they are unable to save his life. A doctor tells them that Richie is dead, and Lisa passes out in shock. They put Lisa to bed in an empty room and give her a sedative to help her sleep, while the doctor questions Alan about what happened to them.
It is here that we realize that the corpse Bill was preparing for, the "bear attack" victim, was Richie. He is delivered to the funeral home, while Lisa has a disturbing dream in the hospital. She dreams that she is standing over Richie's coffin in the funeral parlor, where he awakens and kisses her on the mouth, leaving a great amount of blood behind. Lisa screams and imagines that she wakes up in the hospital room, where she bites open Alan's throat and stabs a nurse to death. Alas, this is only a nightmare, and Lisa awakens for real.
Meanwhile, at the funeral home, the director gets drunk in his office and falls asleep at his desk. Later, he is awakened by an anonymous phone call. For some reason this prompts him to investigate the funeral parlor, where he finds zombies feeding on the corpses. In a strange case of editing, the film makes it appear as if the funeral director has his eyes ripped out by the zombies. But there is a sudden jump cut to the man being tended to by orderlies in an insane asylum. They put him in a strait jacket, while he screams from an isolated room that he is not insane.
