As the anniversary of her friends' gruesome slayings at the hands of the vengeful fisherman, Ben Willis (played by [Freddie Prinze Jr.](freddie-prinze-jr)), lingers painfully in Julie's (portrayed by [Jennifer Love Hewitt](jennifer-love-hewitt)) mind, her nightmares continue to haunt her relentlessly. In a surprising twist, her roommate Karla Wilson (played by [Brandy Norwood](brandy-norwood)) wins a fabulous trip to The Bahamas through a local radio station, and after some hesitation, Julie persuades her boyfriend Ray Bronson to accompany them. However, their excitement quickly turns to dread when Ray and his colleague Dave unexpectedly discover a chilling sight: a body lying in the road. Initially mistaking it for a mannequin, they soon realize the horror is all too real as Ben suddenly appears, brutally dispatching Dave with his hook and launching a terrifying chase after Ray down a perilous hill.
The following morning, Julie, Karla, and their friends Tyrell Martin and Will Benson set off for their tropical paradise, blissfully unaware of the horrors awaiting them. Upon their arrival at their hotel in Tower Bay, Ray's disappearance from the hospital raises alarms, leaving Julie anxious and fidgety. That evening, she tries to find solace by taking the karaoke stage at the hotel bar, but her joy is cut short when the words, > "I still know what you did last summer," flash ominously on the screen, causing her to flee back to her room. Little does she know that Ben’s bloody rampage has already begun, taking the life of a dockhand named Darick and later that of the housekeeper Olga, both victims of his merciless wrath.
As the group relaxes by the hot tub, Julie's anxiety grows as she frantically searches for her toothbrush. The grim reality crashes down on her when she discovers Darick's lifeless body hidden in her closet, a clear sign that Ben has followed them to the island and is intent on claiming more victims. When Julie attempts to ring the alarm to her friends, the skeptical hotel manager Mr. Brooks dismisses her fears, insisting they remain on the island due to an approaching storm. As tension mounts, another victim, Titus Telesco, is claimed by Ben poolside. Amid the ensuing chaos, a resilient Ray, having narrowly escaped from his own encounter with Ben, embarks on a desperate mission to rescue Julie from the unfolding horror.
With their temporary sanctuary shattered by the brutal murders of Olga, Titus, and Mr. Brooks, the group finds themselves isolated, their only means of communication—a two-way radio—rendered useless. Seeking refuge, they head to Estes's quarters, only to uncover that the boat hand had been utilizing voodoo to manipulate events around them. The mysterious Estes explains that he had intended to protect them after realizing their answer to the radio station's question was flawed. He reveals the tragic history of Ben's family, including the horrifying truth that he had killed his wife Sarah upon discovering her betrayal. After Estes vanishes, Will volunteers to lead a search party while Ray commandeers a boat to scour the island for clues. Meanwhile, Julie, Karla, and Tyrell stumble upon Nancy, a frightened bartender hiding in the kitchen.
As their plight intensifies, Ben's malevolence becomes evident when he unexpectedly descends upon them in the kitchen, brutally killing Tyrell. The trio narrowly escapes to the attic, where Karla meets a tragic fate. Julie and Nancy intervene, rescuing Karla and fleeing to a storm cellar, where they stumble upon a chilling sight: a gruesome display of Ben's previous victims. Will then bursts in, claiming he has spotted Ben on the beach, urgently pulling the girls back to the hotel. He reveals that Estes had attacked him, leaving him gravely injured. As Nancy and Karla seek out a first-aid kit, they instead discover Estes impaled by a harpoon, a horrific reminder of the threat they face. Just then, Ben returns, striking down Nancy and launching an attack on Karla. While Julie tends to Will's wounds, he discloses a shocking truth about his own identity as the radio host responsible for cold-bloodedly murdering Estes.
As chaos reigns, Will takes Julie to a local cemetery, where he reveals his connection to Ben as the lost son. This revelation sends shockwaves through their group just as Ben reappears and attacks Julie. A fierce confrontation ensues between Ray and Will, and in a tragic turn of events, Ben inadvertently kills his own son while aiming for Ray. Amidst this turmoil, Julie finally exacts her revenge by shooting Ben dead. As the dust settles, she discovers that Karla has survived, and they are ultimately rescued by the coast guard.
In the bleak aftermath of these horrifying events, Julie and Ray attempt to rebuild their lives, purchasing a charming home together. Yet, one morning, as Ray gets distracted during his routine, leaving Julie alone, she gazes into the mirror only to see Ben's haunting glare staring back, leaving the story open-ended with an unsettling air of dread lingering in their new life.
