A young boy is suffering from nightmares by Freddy. A psychiatrist is asked to help the boy. The doctor does help but at the most horrible cost. Meanwhile a cameraman is determined to prove that Freddy does exist. Freddy decides to teach him a lesson Krueger style.

A Talkshow host who is doing a story about if nightmares can kill, is being haunted by Freddy. He goes ahead with the story anyway despite Freddy's warnings. The second half is about a teenage boy who is involved in a car accident and is a subject of an illegal surgery by a doctor who switched brain tissue from the talkshow host to the boy. The boy is now being hunted by Freddy, who will stop at nothing to kill him.