Puppet Master III

On November 13, 1938, Toulon's puppet show in Berlin mocks Hitler. Four Nazis break in and brutally kill his wife Elsa. Toulon uses Elsa's brain matter to reanimate Leech Woman, and the boy's brain matter is later used to create Blade; the puppets then craft life for Pinhead and Tunneler. They escape Germany and head to America.

Toulon and his living puppets flee Germany and head for the United States. They take up residence at the Bodega Bay Inn, run by Toulon's cousin Paul, where Toulon continues his secret experiments. The inn becomes the base of his growing nocturnal life.

On March 15, 1939, Fritz and Hans track Toulon to the Inn. After giving life to Jester, the image of Toulon himself, André hides the puppets behind a wall panel and commits suicide. His body is buried in the Shady Oaks cemetery behind the hotel.

Three weeks after Toulon's death, Paul reopens the inn to tourists and the room is booked by horror movie actor Chuck Dalton. Susan Straun arrives as an aspiring actress and becomes entangled with Paul, setting up new dynamics at the inn.

The night before Chuck's arrival, Fritz and Hans sneak back into Toulon's room. When the maid catches them, Hans kills her. They depart, convinced the room is booby-trapped and unsafe for exploration.

Chuck Dalton arrives with Susan Straun; Paul forms a connection with Susan. Hans returns with Helga Faulkenberg, an undercover Krapps Shipping employee, posing as a husband and wife to infiltrate Toulon's room.

Helga seduces Chuck to gain access, then drugs him to search for puppets. She finds the wall panel where the maid's body was hidden and is killed upon discovering it by the puppets. Hans learns of Helga's fate and departs.

Hans sneaks back into the room, discovers the bodies, and is killed by the puppets who protect Susan. Paul finds a bloody Susan and Andre's diary, and the elixir is used to bring Andre back from the grave.

Two weeks later, Herr Kron questions Fritz about Helga and Hans. Fritz explains that the Egyptian papyrus hidden in Elsa's grave links Toulon's reanimation to Cairo, and the secret resides in the temple of Anubis.

In flashbacks, André bought the Egyptian papyrus on November 19, 1919 from Ahmed El Eskander in Cairo, beginning the path to eternal life. The secret remains tied to the temple of Anubis and the puppets themselves.

Eskander reveals that a 'One-Eyed' man in Thebes knows the temple's location. Puppets travel with Paul to Egypt; Eskander is killed by the puppets; One Eye is driven away. Fritz and the team reach the temple, Gruber is killed, and the temple is blown up with dynamite; Fritz escapes with the camera.

Back at the Inn, Fritz returns with the pictures and discovers Jester tampered with the camera. André argues that the puppets themselves hold the key to reanimation. Toulon and the puppets begin preparing an elixir in the attic, planning to brew it in two days.

Lee Maxwell confronts Toulon as Fritz tries to lure him to Germany. A battle ensues; Leech Woman and Jester are shot as Blade, Tunneler and Pinhead strike back. Fritz dies in the mêlée, and Toulon barely survives; the elixir is used to sustain the puppets, while Andre dies again.

Andre is laid to rest behind Shady Oaks cemetery once more. Paul and Susan decide to raise the puppets as their own children, accepting them as part of the family. The surviving puppets continue to exist under their guardianship, closing the cycle of creation and protection.