Da den 6-årige Andy Barclays babysitter på brutal vis skubbes ud af et vindue og dør, er der ingen, der tror på ham, da han siger, at Chucky - dukken han lige har fået i fødselsdagsgave - gjorde det. Men så begynder der at ske andre ting - grusomme ting. Og da det følgende orgie af grusomme mord bringer en detektiv på sporet af den dødsensfarlige dukke, opdager han, at de virkelige rædsler først lige er begyndt. Den sindssyge dukke pønser på at overføre sin onde ånd til et levende menneske, nemlig lille Andy.
In New York City, David Stillwell struggles to recover his memory before the people who are trying to kill him succeed. Who is he, who are they, and why is he surrounded by murder?
Rasputin, a crazed and debauched monk wreaks havoc at the local inn one night, chopping off the hand of one of the drinkers. As the bitter locals plan their revenge, the evil Rasputin works his power over the beautiful women who serve at the Tsar's palace. Even the Tsarina herself is seduced by his evil ways and, as his influence begins to dominate government policy, there is only one course of action left... to destroy him before he destroys them all.