Since the events of the previous film, Kristen, Kincaid, and Joey have been released from Westin Hills and are living lives as normal teenagers. However, Kristen believes Freddy is coming back and summons Joey and Kincaid into her dreams, they warn her that dreaming of Freddy might cause his return. The next day, Kristen meets up with her boyfriend, martial arts enthusiast Rick Johnson, and their friends: Rick’s sister Alice, Sheila, an asthmatic genius, and Debbie, a tough girl who doesn’t like bugs.