Several years after the events of the first film, Mason [Alexander Price] stops by Gretel's pie shop & bakery shortly after closing one night, only to be killed by a hooded figure. Elsewhere, Hansel [Brent Lydic] has spent years becoming a witch hunter and has just killed the elusive witch Bunny [Jennifer Elizabeth], when he learns of Mason's disappearance. He decides to return home to Gretel, who he hasn't spoken to for a year. He arrives at Gretel's and she tells him her suspicions that Mason was murdered in the bakery. That night, four witches—Circe [Elisha Kriis], Kikimora [Nanrisa Lee], Morai [Adinett Nsabimana], and their high priestess Cthonia [Jhey Castles]—convene in the woods nearby Candlewood. They take control of a local homeless woman to be their servant in their plot to avenge their sister Lilith [Barbara Scolaro]'s death and reclaim Lilith's bakery.
The following day, Hansel and Gretel visit Mason's brother Jacob [Riley Murphy] and his roommate Willy, and Hansel explains his theory that a new witch has taken over Lilith's bakery. Jacob and Willy insist on helping with the search for Mason, but when the group leaves the house, the witch's homeless captive begins firing at them. Gretel is kidnapped while the others take cover. Hansel shoots and kills the homeless woman and discovers a witch's mark on her forehead, confirming his theory, and they realize Gretel is gone. Meanwhile, Gretel is bound in the bakery and confronted by the witches. She confesses to killing Lilith and implies she ate part of her, gaining Lilith's powers. Cthonia makes a deal with Gretel: in exchange for Hansel's head, they'll let her keep Lilith's bakery; if she doesn't kill Hansel, they will kill her instead.
Gretel kidnaps Willy, and the following day, Hansel receives hostage pictures of Gretel and Willy texted to him, which he shows Jacob. Jacob, who has some photography knowledge, recognizes graffiti in the pictures as belonging to an abandoned warehouse. They head there and find Gretel and the unconscious Willy tied up, when Kikimora fills the room with a blinding fog. Gretel allows Hansel to decapitate Kikimora, and while he and Jacob help Willy, Gretel feeds on Kikimora's corpse, gaining her powers. Hansel believes there are more witches nearby, but they manage to escape, while Circe watches them. Hansel drops off the others and then goes to the bakery. Circe confronts Gretel at her grandmother's house about Kikimora's death. Gretel offers to take Circe to Hansel so Circe can kill him herself. At the bakery, Circe hypnotizes Hansel to kill himself with his own knife. Before he can, Gretel summons Kikimora's blinding fog, which breaks Hansel's hypnosis, allowing him to stab Circe in the face. As Circe dies, Gretel, obscured by the fog, drinks Circe's blood and gains her powers. Hansel checks on Willy, and Gretel attempts to hypnotize Jacob into sleeping with her and then killing himself, but it fails because Jacob is gay. Instead, Gretel kills him with brute force.
Hansel and Willy find a package at his door containing Jacob’s eyes, then are led on a macabre scavenger hunt with Jacob’s body parts. Gretel brings the rest of Jacob’s body to Morai, telling her it’s Hansel, and then hides nearby. The notes eventually lead Hansel and Willy to Morai's location. Hansel kills Morai and leaves with Willy; Gretel drinks Morai's blood. Cthonia calls Gretel from her grandma's phone, luring her back home. She threatens to kill Gretel's grandma, but Gretel tears off her grandma's head instead, which Hansel and Willy witness. Cthonia concedes her high priestess ring to Gretel, who assumes power over the coven. She and Cthonia take Willy and Hansel to the local pet cemetery where Gretel reveals Lilith is buried. Now holding enough power, Gretel begins a resurrection incantation, bringing Lilith back to life. Gretel then rips Cthonia's throat out so Lilith can regenerate, but Willy reveals herself to be a powerful witch-crone who disintegrates Lilith. Hansel cuts Willy's throat, killing her, and confronts Gretel. They fight with neither sibling initially willing to kill the other. Hansel eventually shoots Gretel in the shoulder as police cars pull up. She admits defeat and they walk off together.
