On a frozen, snow-swept edge of Hell, an Old Hag Lisa Goodman in a dusty shack is paid by a Bailiff Ian Roberts to conjure up Killjoy Trent Haaga. After Killjoy is summoned, the Bailiff reappears and chokes him, and Killjoy wakes strapped to an electric chair, subjected to torture as he is asked to plead innocence or guilt.
Back on Earth, three years have passed since the events of the previous film. Sandie Whitaker remains locked in the Essex County Mental Asylum, repeatedly questioned by Detective Grimley Cecil Burroughs and Detective Ericson Jason R. Moore about the missing bodies of Zilla, the Professor, Rojer and Erica. Doctor Simmons notes that her brain seems stuck in a perpetual stage of laughter, making it hard to determine the cause, but clues from the Professor’s house—alongside his ties to Michael from the first film—lead Detective Ericson to suspect that the Killjoy legend might be real.
Meanwhile, the Bailiff escorts Killjoy to a new level of Hell that resembles a spaceship, where a courtroom sits under Beelzebub Stephen F. Cardwell. Killjoy faces a trial for the crime of being too soft and letting his last victim, Sandie, escape. Jezabeth Aqueela Zoll, the Devil’s Advocate who was once in a relationship with Killjoy, acts as the accuser and sets a sharp, personal tone for the proceedings. Killjoy is found guilty and is stripped of his malice—his powers ebb away as the verdict lands.
In Hell Jail, he meets Skid Mark John Karyus, a human demonic clown who idolizes Killjoy but has his own secret agenda to seize his position. Skid Mark offers to become Killjoy’s attorney and, with the little human blood he has left, conjures up Punchy Al Burke, Freakshow Tai Chan Ngo, and Batty Boop Victoria De Mare. In the first court hearing, the quartet is questioned by Jezabeth, but chaos reigns as Punchy speaks only Polari, Freakshow is a mime, and Batty Boop makes Killjoy apologize in front of everyone. Skid Mark’s clumsy defense leads Scribe Jim Tavar to cross out nearly half of Killjoy’s fifty-three names, weakening him and erasing those identities from existence.
Back on Earth, Detective Ericson and Doctor Simmons notice that the Professor’s evidence vanishes and that memories of it fade. They decide to reunite with Detective Grimley and Sandie at the asylum to discuss what’s happening.
Meanwhile, Punchy begins to organize a revolt among the demonic clowns to help Killjoy, and Freakshow travels to the Old Hag’s dwelling to find materials for a new, bionic brother. He notices she has a magic mirror, but access to it is granted only if he sleeps with her. Returning with the materials, Batty Boop forges a plan and extends an offer to help Killjoy by entering the mirror to Earth and bringing Sandie to Hell to prove Killjoy guilty.
Batty tracks Sandie to the asylum, and she and Freakshow enter the mirror. In the asylum, Security Guard Jim Raymond James Calhoun is killed, and Batty kills Detective Grimley when he arrives. Sandie tries to escape but Batty captures her and pushes her into the mirror. Doctor Simmons discovers Jim dead and Sandie’s straitjacket missing, assuming she has escaped. Simultaneously, Freakshow attacks Detective Ericson but is summoned back to Hell, leaving Ericson wounded and shaken.
Back in Hell, Beelzebub takes Killjoy to Oblivion, the Final Circle of Hell, a place of nothing, to show him what awaits if he loses. He also leaves an insurance box on the desk in the courtroom, promising it as insurance if Killjoy wins.
At the next hearing, Killjoy fires Skid Mark as his attorney and decides to represent himself. Batty Boop brings Sandie to the stands, and Sandie recounts the events, while Killjoy details his wicked deeds to convince Beelzebub that he is indeed evil. The Trial of Combat ensues, pitting Killjoy against Skid Mark, who transforms into a monster after Skid Mark’s infection—a single “love bite” that carries a deadly bite.
An unnamed Clown Observer hands Killjoy a bag of tricks, courtesy of Punchy and the clowns, but the bag proves ineffective. Batty Boop recognizes Skid Mark as one of her victims, who roofied her and left behind only one “love bite” infection. The revolt in the courtroom erupts as Batty Boop kills Jezabeth and Punchy kills Bailiff. Beelzebub, in a rage, uses his powers to strip the room away, leaving Punchy, Freakshow, Sandie, Batty, and Killjoy intact. Killjoy opens the insurance box, triggering a self-destruct sequence that will blow up Hell in a minute. The group escapes in the elevator back to Earth, but the clown posse closes in on Sandie, hot on her trail as they spill out into the streets.
