Eight years after Chucky's second demise, the Play Pals company restarts production of the beloved Good Guy dolls and reopens their abandoned factory. As Brad Dourif's infamous killer doll is reborn in a new body, a splash of his blood falls into the molten plastic during the process, reviving him for good. Chucky tortures and murders Play Pals CEO Peter Haskell's Sullivan, using a menagerie of innocent toys to carry out his brutal acts, then turns his attention to locating Justin Whalin's Andy Barclay, drawing a perilous line from the toy factory to the boy he once vowed to torment.
Now 16, Andy has been sent to Kent Military School after bouncing through several foster homes. Henry G. Sanders appears as Colonel Cochrane, the stern commandant who urges him to abandon his "fantasies" about the doll. Andy finds wary allies in the cadets: Jeremy Sylvers as Ronald Tyler, an 8-year-old with a quick mind and a surprising confidence; Dean Jacobson as Harold Aubrey Whitehurst, a cowardly but ultimately loyal companion; and Perrey Reeves as Kristin De Silva, a thoughtful, resourceful girl who catches Andy’s eye. He also crosses paths with Travis Fine as Brett C. Shelton, a brutal lieutenant colonel who bullies the cadets and tests Andy’s resolve.
Tyler is tasked with delivering a package to Andy’s room and discovers that the box contains a Good Guy doll; he brings it to the weapons armory to inspect it. Chucky bursts out, enraged to find Tyler instead of Andy, but remembers a dark truth: he can possess the first person who learns his true identity. Colonel Cochrane intervenes, confiscates the doll, and throws it into a garbage truck. Chucky escapes by manipulating the truck’s driver into the compactor, crushing him in a brutal, methodical display of power.
That night, Chucky attacks Andy and details his plan to inhabit Tyler’s body. Before Andy can fight back, Shelton arrives, swiping the doll away. Andy sneaks back into Shelton’s room to reclaim it; Shelton awakens to confront him, only to discover that Chucky has vanished. Suspecting the doll has been stolen, Shelton orders all cadets to endure extra exercises as punishment. Chucky again attempts to possess Tyler, but the attempt is interrupted by Kristin De Silva and fellow cadet Ivers. The next violent chapter unfolds when a knife-wielding Chucky ambushes Cochrane, inadvertently provoking a fatal heart attack.
The morning after Cochrane’s death, Andy tries to convince Tyler that Chucky is evil, but Tyler remains skeptical. Meanwhile, Chucky slashes the camp barber, Sergeant Botnick, with a straight razor. Whitehurst witnesses the brutal act and flees in terror, heightening the sense of danger among the cadets.
Despite the leadership drought, the school’s annual war games proceed with a Red Team and a Blue Team. Andy, Whitehurst, and Shelton are assigned to the Blue Team. Chucky quietly sabotages the Red Team by replacing their paint bullets with live ammunition, turning the simulation into a deadly battlefield. Chucky lures Tyler away from his squad and, as Tyler begins to grasp the doll’s true evil, Tyler stabs him with a pocketknife and escapes to reunite with Andy. Chucky then takes De Silva hostage, forcing Andy to choose between saving De Silva and preserving Tyler’s life. In the ensuing chaos, the Blue and Red teams open fire; Shelton is killed by a Red Team bullet, and Tyler manages to break away.
Chucky hurls a grenade toward the feuding cadets, and Whitehurst dives atop the device, sacrificing himself to save the others. Tyler flees to a nearby carnival where Chucky stalks and kills a security guard before recapturing the doll. Andy and Kristin De Silva arrive, seizing the guard’s gun as they pursue Chucky and Tyler into a horror-themed roller-coaster ride. Chucky wounds De Silva, who hands Andy the weapon and urges him to save Tyler. Andy pursues Chucky deeper into the ride, and after a tense standoff, he fires at the doll, killing him—though Chucky briefly revives. In a final, brutal struggle, Andy hurls Chucky into a massive metal fan, shredding the killer doll’s body and finally ending his spree. De Silva is rushed to the hospital, and Andy is taken away by police for questioning, leaving the fate of the young hero and the haunted town uncertain but the immediate threat of Chucky finally extinguished.
