Puppet Master II

André Toulon's grave is excavated at Shady Oaks cemetery behind the Bodega Bay Inn. Pinhead dusts off the casket, opens it, and pours neon liquid on the corpse, triggering the skeleton's arms to rise as the puppets watch from the edge. This event marks Toulon's return and the puppets' ominous resurgence.

A few months later, parapsychologists Carolyn Bramwell, her brother Patrick, and Lance and Wanda arrive at the hotel to investigate Megan Gallagher's murder. Megan's brain was extracted through her nose by Blade, a grisly clue tied to the puppets' power. The team senses a malevolent force within the hotel.

Alex Whitaker, traumatized by events from the previous film, is believed to be responsible for Megan's murder and is locked away in an asylum. His seizures and premonitions are dismissed as delusions by the staff, leaving him isolated and vulnerable. This subplot deepens the sense of creeping insanity surrounding the case.

Camille Kenney, the guest psychic, senses the puppets' danger and attempts to leave the hotel. She warns the others that they are not safe, but Pinhead and Jester attack and kidnap her. The next day, Camille's belongings and car are found, signaling she has vanished and prompting Carolyn to inform Camille's son.

That night, Tunneler drills into Patrick's head, killing him. Lance bursts in and crushes Tunneler with a lamp. The surviving investigators later dissect Tunneler and conclude that the puppets run on a secret chemical that powers their artificial intelligence.

The next morning, Eriquee Chaneé—the reanimated Toulon in disguise—enters the hotel and claims he inherited the place after Megan's death, saying he just returned from Bucharest. The group remains skeptical but he offers to let them stay and continue investigating, though his quarters are off-limits.

That evening, Blade and Leech Woman visit a local farmer's house. Leech Woman kills the husband, but his wife Martha fights back by throwing Leech Woman into the furnace. A new puppet, Torch, arrives and kills Martha with a flamethrower built into his arm. Blade retrieves a piece of Martha's charred remains and returns to Toulon.

In a conversation with Toulon, Torch seems to support his belief that Carolyn is Elsa, Toulon's deceased wife. Toulon also has a Cairo flashback from 1912 about obtaining his animating formula. The pair's dependence on the puppets grows more tangled as Toulon's past fuels his plans.

The following morning, Michael goes to town with Carolyn to find Camille and learn more about Eriquee Chaneé. Meanwhile the puppets kill various people because they are growing weaker and need brain tissue to sustain Toulon's formula. Carolyn discovers there are no records of Eriquee Chaneé.

That night, Carolyn and Michael share a romantic moment, as do Lance and Wanda. Blade then kills Lance and Wanda and uses their tissue for the formula, intensifying Toulon's power at the cost of the pair.

Carolyn sneaks into Toulon's room and discovers two life-sized mannequins in the wardrobe. Toulon, still thinking she is Elsa, ties her up as Michael fights Torch, Pinhead, and Blade. The dumbwaiter opens to reveal Jester and Camille's body, and Toulon transfers his soul into a mannequin, declaring they will live together.

Torch sets Toulon on fire, causing him to fall from a window to his death. The puppets realize Toulon's betrayal and torment him as Michael and Carolyn escape. Jester remains with Camille's body and the remaining formula, while Camille's revived soul, now in a female mannequin, drives the puppets toward the Bouldeston Institution to enchant the children.