Plot

A group of toymakers seek to use Andre Toulon's formula, now in the hands of Toulon's great-nephew Robert, to give life to a line of killer toys that they plan to unleash on Christmas Eve.

Robert Toulon, great-nephew of original Puppetmaster Andre Toulon, who brings the puppets back to life with the help of his daughter Alex, they are soon pursued by a mysterious toymaking syndicate that seeks the Toulon's reanimation formula in order to turn their line of dolls into vicious killers on Christmas Eve.—gatecrasher258

Robert Toulon and his daughter Alex have discovered a brought back the puppets of Robert's ancestor. But when Christmas draws near Sharpe Industries ceo Erica Sharpe has made a deal with a demon named Bael. They bring forth a number of vicious killer toys to get the mysterious Secret of Life from Robert Toulon. When the puppets are unable to defeat them, the toys rain supreme, until that is the new Puppet Master repairs four of the puppets into new Cyber Mechanic defenders willing to rage war against their stringless counterparts.—Wallace Entertainment

In California, the great-nephew of Andre Toulon and owner of the Toulon Doll Hospital Robert Toulon has found with his daughter Alexandra an ancient formula that brings the puppets back to life with his blood. However, the devilish owner of the Share Toys, Erica Sharpe, who has made a deal with the demon named Bael, has a hidden camera in Toulon's place and discovers his secret. She has the intention of using his formula to reanimate the Christmas Palls, a successful toy manufactured by her factory, to cause the greatest slaughter of innocents on the Christmas morning. But Robert, together with his daughter, Sergeant Jessica Russell and the guardian's puppets Jester, Pinhead, Blades and Six Shooter fight against Erica, Bael and her evil toys to save the mankind.—Claudio Carvalho, Rio de Janeiro, Brazil

Robert Toulon, great-grandnephew of Andre Toulon, the original puppet master, succeeds in bringing the puppets back to life with the help of his daughter Alex. Some goons break and enter the Toulon dwelling and try to steal the puppets as a result they are set on fire. Then a policewoman come to investigate the disturbance. Alex then puts out the fire. They are soon pursued by a mysterious toymaking syndicate that seeks the Toulons' reanimation formula in order to turn their own line of dolls into vicious killers on Christmas Eve. The formula consists out of blood from virgin women given to a demon. With the help of a policewoman that Robert meets on the night that his puppets are almost burned, the syndicate has a chance of obtaining the formula. Robert's daughter gets captured and risks being killed by being drained of all the blood in her body. Meanwhile her father is occupied with the toymaking syndicate who threaten him to let her carry his children, in order to obtain the power of the Toulon blood.

The puppets end up battling it out with the toymaker's toys: Blade slices Grizzly Teddy to pieces until finally beheading him, Jester knocks Jack Attack to the wall with his mace hand,which he received after the fire at the Toulon Doll Hospital, and Jack Attack is destoyed, and Pinhead squeezes Baby Oopsie Daisie's head until slime spills out of his head and he knocks him down into the fiery chasm and the puppets win. Robert, Alex, and the puppets are invited by the policewoman to have the Christmas dinner and walk out of the factory while watching the sun rise. Then, inside the factory, Baby Oopsie Daisie, who somehow survived his attack from Pinhead, wishes everyone a Merry Christmas and a Happy New Year in his own way and goes back down the chasm and the film ends.