After dreaming of making love, Alice Walker takes a shower when a torrent of water gushes from the showerhead, filling the stall. Desperate, Alice shatters the shower door only to fall into an insane asylum. She then finds herself clad in a nun’s habit with a name tag that reads “Amanda Krueger,” surrounded by hundreds of male psychopaths. As they swarm her, she wakes up screaming to find herself in the arms of her boyfriend Dan Jordan, but he transforms into Elm Street killer Freddy Krueger. She wakes up alone in bed. Later, Alice graduates from high school. After the ceremonies she tells Dan of her dream. They are soon joined by friends, Mark Gray, an aspiring cartoonist, Yvonne, a diver, and Greta, an aspiring model. Yvonne invites everyone to a party but Alice says she has to work. As Alice cuts across a park to get to her job, she hears a group of children chanting that Freddy Krueger is coming back. Following the children into the woods, she sees a nun entering a dilapidated hospital. Suddenly, she is in a maternity room watching Sister Amanda give birth to a monster. The doctor drops the child and it runs away. Alice follows it into a ruined church. As she watches in horror, the monster climbs onto the altar and transforms into Freddy Krueger who yells, “It’s a boy.” A door bursts open. Amanda enters, and Freddy disappears. Amanda instructs Alice to find her remains in the tower so she can be released from her earthly prison. Alice runs through the church doors and finds herself at the diner where she works. Frightened, she calls Dan who is at the high school. He jumps in his pickup truck and races down the highway, only to nod off. He wakes up when he hears his mother’s voice on a talk radio show calling him an ungrateful brat. When the show’s host recommends she kill her son, several seat belts spring from the seat and pin Dan’s hands to his side. Freddy Krueger appears next to him and drives the truck into an oncoming car. Dan is hurled through the windshield and lands back in the school parking lot. He grabs a nearby motorcycle and speeds toward the diner. The motorcycle transforms into a mechanical Freddy Krueger, and strips away the boy’s skin. Dan wakes up in his truck in time to see an oncoming Mac truck. Alice has a vision of Dan being sucked into hell and runs outside in time to see him crash. She faints when Dan’s dead body looks at her and asks if she wants to make babies. Alice revives in the emergency room and tells Yvonne, who works there as a volunteer candy striper, and a doctor that Freddy Krueger killed Dan. The doctor blames her “delusions” on the fact she is pregnant and keeps her overnight for observation. During the night, a little boy, Jacob, appears and tells Alice she will be alright. The next day, Alice tells Mark, Greta and Yvonne that Amanda Krueger was a nun who was raped at an insane asylum and gave birth to Freddy Krueger. After Kruger grew up and murdered twenty children he was released on a legal technicality. The murdered children’s parents killed Freddy Krueger by setting him on fire. Her friends do not believe Krueger is back, but promise they will protect her. Later, Greta is at a formal dinner with her mother and her snooty friends, when she closes her eyes. When her mother chides her for not eating, Greta snaps that she will only vomit it up later. Freddy appears dressed as a chef and shovels food into Greta’s mouth until she chokes. Across town, Alice is putting away groceries when Greta, her cheeks bulging with food, falls out of the refrigerator. Before Alice can react, Freddy drags Greta back to the real party and she dies choking on a piece of food. Later, Yvonne and Alice go to the warehouse owned by Mark’s father, but Yvonne leaves when Alice talks about Freddy Krueger. Mark takes Alice into a room wallpapered with his comic strips and asks her to tell him about Freddy. She agrees, but leaves to get a cup of a coffee. When Alice returns, she finds Mark asleep and a drawing of him standing in front of Freddy’s childhood home. Alice draws a stick figure of a girl and labels it “Alice.” Finding herself in front of the house, she rushes in to find Mark holding onto the edge of a hole in the living room floor. When she pulls him out, he faints, hits the floor and turns to dust. Standing in his place is Jacob, who accuses Alice of not wanting him. Realizing Jacob is her unborn son, Alice denies the accusation, but Jacob insists his friend Freddy Krueger has told him different. Alice finds herself back at the warehouse with Mark. Later, while getting an ultrasound test, Alice is sucked into an overhead lamp and finds herself in her own womb with a developing fetus. As she stares in wonder, Freddy Krueger appears and she realizes he is injecting Jacob with the souls of her friends to make the baby like him. Back in the real world, Alice explains that Freddy Krueger is using Jacob’s dreams to cross over. Mark suggests Alice abort the child, but she refuses. Mark shows Alice an article claiming that Sister Amanda committed suicide; however, her body was never found. Alice declares Freddy Krueger killed her and hid the remains. At school, Yvonne nods off in a Jacuzzi. She wakes up and climbs to the diving platform, which transforms into a giant claw. As she leaps, the pool drains, leaving a single puddle of water. She hits it and finds herself in a metal tank full of steaming water. At the warehouse, Alice orders Mark to watch over her while she falls asleep to hunt for Amanda. She finds herself climbing up the asylum tower. As she reaches the top, her body is spun through a door into the metal tank in which Freddy Krueger holds Yvonne. Alice impales him with a giant ladle and the girls escape back into the tower. In the real world, Mark is sucked into a comic book he is reading and finds himself in a black and white world. Freddy Krueger appears with Greta, who has been turned into a porcelain doll, and knocks her over, causing her to shatter on impact. Enraged, Mark transforms into one of his super heroes and guns down Freddy Krueger. The monster pops back wearing a cape, turns Mark into a piece of paper and shreds him with his claws. Yvonne awakes in the Jacuzzi and drives to the warehouse to find Mark dead, and Alice’s father taking her home. Before she leaves, Alice insists Yvonne find Amanda’s body at the asylum. Following orders, Yvonne finds a bricked-up room in the tower and batters at it with a metal rod. Meanwhile, Alice falls asleep and finds herself in the asylum with Freddy Krueger. She knocks him down a flight of stairs where he is swamped and ripped apart by hundreds of lunatics. Hearing laughter, Alice turns to see Jacob standing with Freddy Krueger on another staircase. When Jacob follows her instructions to run, the staircase splits into hundreds of new ones going in all directions. Freddy Krueger disappears, allowing Jacob to explain that Freddy Krueger is hiding inside Alice. She makes an effort, and Freddy Krueger is partially pushed from Alice’s body just as Yvonne breaks into the secret room. Yvonne sees Amanda kneeling, but when the teen touches her, the nun dissolves. Reappearing in the dream asylum, Amanda orders Jacob to release the power Freddy Krueger has given him. Jacob opens his mouth and the souls of Dan, Greta and Mark spring forward and pull the deformed Krueger baby from Alice’s body. Jacob also turns into a baby. Both mothers pick up their children to reabsorb them into their wombs. Amanda screams for Alice to go as claws rip out of her stomach and the dream asylum collapses. Months later, Alice and Yvonne take a newborn Jacob to the park, unaware that the children heralding Freddy Krueger’s arrival are playing nearby.