The puppets return and hunt paranormal researchers in an attempt to take their brain fluid for their master, Andre Toulon.
Toulon's puppets help collect brain tissue from human victims for Toulon to create his formula to animate the inanimate. The victims this time include a group of researchers from a US department, responsible for invstigating the paranormal.—Rob Hartill
The puppets return the original master, Andre Toulon, back to life inorder for him to help them kill and collect brains for more fluid for them to live off for another half century. And when a inspective group come to the hotel believe in nothing but Alex Whitaker's stories they keep watch, and throughout the movie they are hunted down one by one for their brains and when Andre sees Carolyn Bramwell who looks just like his dead wife Elsa, everything goes to hell. Run-on-sentences are the real horror in this li'l diddy.—Wallace Entertainment
In Shady Oaks Cemetery behind the Bodega Bay Inn, André Toulon's grave is excavated. Pinhead opens Toulon's casket, pours neon liquid on the corpse, and watches with Tunneler, Leech Woman, Blade, and Jester as the skeleton's arms rise. Months later, parapsychologists Carolyn Bramwell, her brother Patrick, and the flirtatious Lance and Wanda are sent to the hotel to investigate the strange murder of Megan Gallagher, whose brain was extracted by Blade. Alex Whitaker, driven insane from earlier events, is suspected and locked up in an asylum, his seizures and premonitions dismissed as lunatic rantings.
Guest psychic Camille Kenney warns of danger after seeing puppets in her room but is kidnapped by Pinhead and Jester. The next day, Carolyn calls Camille's son Michael when Camille's belongings and car remain at the hotel, but she is missing. That night, Tunneler kills Patrick in his sleep, leading Lance to kill Tunneler with a lamp. The group dissects Tunneler and discovers the puppets run on a chemical that appears to be the secret of artificial intelligence.
A man named Eriquee Chaneé (the reanimated Toulon in disguise) arrives, claiming he inherited the hotel and allowing them to stay but making his quarters off-limits. Michael arrives worried about Camille. Blade and Leech Woman go to a local farm, where Leech Woman kills the husband, Matthew, and is subsequently thrown into a furnace by Martha. Torch then kills Martha with a flamethrower. Blade and Torch return to Toulon, who believes Carolyn is the reincarnation of his deceased wife, Elsa.
Michael and Carolyn investigate Camille's disappearance and Eriquee's identity, discovering no records of him. They share a romantic evening as Lance and Wanda do the same, but Blade kills Lance and Wanda for the formula. Carolyn sneaks into Toulon's room and finds life-sized mannequins. Toulon captures her, still believing she is Elsa. Michael fights off the puppets to rescue her and finds Jester with Camille's body.
Toulon transfers his soul into a mannequin, planning to live forever with Carolyn. The puppets, feeling betrayed, turn on Toulon, who falls out a window and dies. Jester uses the remaining formula to revive Camille in a mannequin. Camille decides to take the puppets to the Bouldeston Institution for the Mentally Troubled Tots and Teens to "enchant" the children.
