Following the traumatic supernatural events at their previous home, the Freeling family—Diane, Steve, Robbie, and clairvoyant young Carol Anne—are trying to rebuild their lives while living with Diane’s grieving mother, Gramma Jess. Unbeknownst to the family, the suburban tract houses were built over a former cemetery, and the
malevolent spirit of Reverend Henry Kane, a fanatical cult leader responsible for his followers' deaths underground, is desperately trying to reach Carol Anne to harvest her pure life force.Gramma Jess passes away peacefully in her sleep, but her spirit lingers to protect her granddaughter, serving as a guiding light against the encroaching darkness. Soon after, bizarre
paranormal phenomena manifest in the new house, including a massive, terrifying mutant worm bursting from the tequila bottle Steve drinks, and a threatening tree attacking Robbie in his bedroom. Terrified, the family realizes the nightmare has followed them.Enter Tangina Barrons, the eccentric spiritual medium from their past, along with Taylor, a Native American mystic. Taylor reveals the dark history of the land and Kane's obsession with Carol Anne. To safeguard the child, Steve undergoes a harrowing spiritual cleansing ritual led by Taylor, in which he confronts his own inner demons and fears. Despite these protective measures, the relentless Reverend Kane physically infiltrates the home, disguising himself as a seemingly normal preacher before revealing his decaying, demonic true form. Kane attempts to abduct Carol Anne, pulling her and Diane into the terrifying netherworld of "the other side."Refusing to abandon his wife and daughter, Steve, accompanied by Robbie and Tangina, utilizes a magical sacred dart given to him by Taylor. Driven by fierce paternal love and protective instinct, Steve plunges back into the ethereal abyss to rescue them. Inside the surreal, nightmarish dimension, Steve confronts the terrifying apparition of Kane. In a desperate, high-stakes struggle, Steve uses the sacred weapon to defeat the demonic entity, neutralizing Kane's hold over the living world. The family is finally reunited, escaping the supernatural realm as the house collapses behind them. Triumphant and forever changed by their harrowing ordeal, the Freelings board a bus, leaving the lingering spirits and suburban horrors behind them, embarking on a hopeful journey toward a peaceful and ordinary future together at last.