The film opens and closes with Jake Scully, portrayed by Craig Wasson, who is acting as a vampire in a low-budget horror production. His performance goes awry when he succumbs to claustrophobia, causing him to botch a take. Things take a turn when a fire erupts on set, prompting the director, Rubin (Dennis Franz), to send him home early.
As fate would have it, Scully returns home to find his girlfriend in a compromising position with another man. Forced to leave her apartment, he has nowhere to go until he attends an acting workshop, where he meets a new acquaintance named Sam. Sam generously offers Scully a house-sitting opportunity at an extravagant Modernist bachelor pad nestled high in the Hollywood Hills. There, Sam points out Gloria Revelle, played by Deborah Shelton, a stunning neighbor whose provocative nightly routines can be viewed through a telescope, as she performs a breathtaking erotic dance "just like clockwork."
Scully's intrigue quickly spirals into a dark mystery when he decides to follow Gloria one day, warning her of a menacing stalker—a man with a disfigured face—who seems to pose a serious threat. The tension escalates when this mysterious Indian snatches Gloria's purse at the beach. Scully's desperate attempt to chase the pursuer leads him into a tunnel, where he freezes in fear. Ironically, it is Gloria who comes to his aid, pulling him to safety. Their moment of intimacy is abruptly interrupted when she regains her composure, pushes him away, and leaves.
As Scully settles into the house, he uses the telescope to witness a gruesome event: the Indian brutally attacking and murdering Gloria with a terrifyingly large electric drill. The sheer horror of the scene challenges assumptions that the crime was merely a botched burglary; it appears far more personal.
Determined to uncover the truth, Scully dives deep into the underbelly of Los Angeles's adult film scene, pursuing Holly Body, played by Melanie Griffith, whose distinctive dance routine he has seen on a 24-hour porn channel. In a bold move, he ingratiates himself into her world by landing a role in an adult film, masquerading as a skilled director wanting to cast her. Their interactions lead them back to the bachelor pad, where Scully admits he is not a producer, but rather questions her about the tantalizing dance performances he witnessed through her window.
A phone call from Sam reveals further connections when Holly recognizes his voice as the one who hired her, inciting her anger. She storms off, only to be picked up by the very same stalker, who knocks her unconscious. Subsequently, Scully's quest leads him to an open grave, an odd location for a confrontation with the Indian, who—shockingly—turns out to be Sam in disguise. A struggle ensues, and Scully discovers Sam’s sinister plan: to frame him as a witness to Gloria's murder while providing himself an alibi.
The narrative comes full circle back to the vampire movie set, where Scully finds himself once again trapped in a coffin, struggling with his claustrophobia yet determined to overcome it. This time, he battles against Sam to escape from the grave and achieve freedom. In the end, Scully resumes his role on set, but with newfound resolve as he films a scene that mirrors his recent harrowing experiences, with Holly observing in the background alongside the crew.
