Mike, after his release from a psychiatric hospital, teams up with his old pal Reggie to hunt down the Tall Man, who is at it again. A mysterious, beautiful girl has also become part of Mike's dreams, and they must find her before the Tall Man does.

The Tall Man, that imposing menace from Morningside Mortuary, is back and once again haunting the thoughts of the now-adult Mike and his friend, ex-Ice Cream vendor Reggie. The two continue their hunt for the mysterious figure and in his path of destruction encounter a variety of dangerous situations, friends and enemies.