Trama

After being contacted by their mysterious former colleague, four psychics arrive at a secluded hotel where they are stalked by a group of murderous puppets.

Neil Gallagher found the secret to Toulon's puppets who come to life and then killed himself. Alex and his psychic friends come to investigate and are stalked by Toulon's puppets who have a variety of strange traits including a drill for a head and the ability to spit up leeches.—Josh Pasnak <chainsaw@intouch.bc.ca>

André Toulon is a puppet maker and the best of the kind. One day he happens upon an old Egyptian formula able to create life, so he decides to give life to his puppets. The Nazis seek to use this knowledge to their advantage and in desperation, Toulon commits suicide. Some years later four psychics get on the trail of a former colleague who suddenly commits suicide, and they decide to investigate the mansion he killed himself in. Along with his widow, they uncover the secrets of the Puppet Master.—Bjarne Mathiesen (edited by Eric Eddy)

Puppet maker Andre Toulon shoots himself at the Bodega Bay Inn before his Secret of Life can be stolen by the Nazis. 50 years later in 1989 the secret is discovered by Neil Gallagher. Soon he sends messages to his psychic friends Alex Whitaker, Dana Hadley, Frank Forrester and Carissa Stamford who arrive to find his wife Megan who claims Neil to be dead. As the night goes by, the murderous puppets are awakend and unleased on the group, only for them to discover that evil comes in all sizes.—Wallace Entertainment

In 1939, at the Bodega Bay Inn in California, André Toulon, an elderly puppeteer, completes his latest creation, Jester, preparing to bring it to life. However, when two Nazi spies approach, Toulon, warned by his animated puppet Kahn, hides his living puppets in a secret compartment. As the Nazis breach his room, Toulon dies by suicide.

Fast forward 50 years to 1989. Four psychics are contacted by their old acquaintance, Neil Gallagher: Professor Alex Whitaker through a nightmare, Dana Hadley via a death premonition and psychic researchers Frank Forrester and Carissa Stamford through undisclosed means. Dana, having located Toulon's hiding place, arranges a meeting at the Bodega Bay Inn, where Neil now resides. Upon arrival, they learn of Neil's recent marriage to Megan and his apparent suicide. Megan leaves instructions for their arrival, and Dana ensures Neil is truly dead by stabbing his corpse with a long pin.

As the psychics settle in, they experience unsettling visions of Neil. During dinner, Dana provokes Megan, causing her to leave the table while Pinhead, another animated doll, emerges from Neil's casket. Alex follows Megan and reveals their history with Neil: Carissa, a psychiatrist, can see an object's emotional past; Dana locates people and items, and Alex foresees the future in dreams. Neil, obsessed with alchemy, discovered the secret of reanimating figures from Ancient Egypt and André Toulon. Believing Neil had betrayed them, the psychics aim to reclaim Toulon's secret and settle scores.

That night, housekeeper Theresa is attacked by Pinhead, fulfilling Dana's prediction. Megan faints upon finding Gallagher's body in a chair; Alex helps her while the others return the body to the casket. Blade discovers protective spells in Alex and Dana's rooms and moves on to Carissa and Frank's room. As they engage in loud sex, Tunneler drills into Carissa's face, and Leech Woman drains Frank's blood with leeches. Dana, returning from a walk, encounters Gallagher's body and is attacked by Pinhead, who breaks her leg. Despite her efforts to escape, Blade slits her throat, fulfilling her fortune.

Alex endures more nightmares, awakening to Megan showing him Toulon's diary, revealing Neil's discovery of reanimation. In a vision, Alex sees Neil, prompting them to escape. They find Dana, Frank, and Carissa's bodies around a table with the resurrected Neil. Neil explains he used Toulon's secret to reanimate himself, seeking immortality. Expressing disgust for the puppets, Neil violently throws Jester, preferring human experiments. Witnessing this, the puppets turn on Neil: Tunneler drills his legs, Blade pins him down, Leech Woman regurgitates a leech into his mouth, and Pinhead breaks his neck. The next day, Megan bids Alex farewell and, as she ascends the stairs, brings Dana's stuffed dog, Leroy, to life.