Emma is an attractive girl in her 20s who has been blind for 20 years. A new type of eye operation partially restores her sight, but she is having problems: sometimes she doesn't "remember" what she's seen until later. One night she is awakened by a commotion upstairs. Peering out of her door, she sees a shadowy figure descending the stairs. Convinced that her neighbour has been murdered she approaches the police, only to find that she is unsure if it was just her new eyes playing tricks on her.

A quartet of murderous psychopaths break out of a mental hospital during a power blackout and lay siege to their doctor's house.

Teenagers in a small town are dropping like flies, apparently in the grip of mass hysteria causing their suicides. A cop's daughter, Nancy Thompson, traces the cause to child molester Fred Krueger, who was burned alive by angry parents many years before. Krueger has now come back in the dreams of his killers' children, claiming their lives as his revenge. Nancy and her boyfriend, Glen, must devise a plan to lure the monster out of the realm of nightmares and into the real world...