Plot
Five years have passed since Freddy Krueger was seemingly defeated. A new family, the Walshes, have moved into the former home of Nancy Thompson. The son, Jesse, happens to move into Nancy's old room. He eventually begins to have nightmares of Krueger demanding that Jesse kill for him using Jesse as a host body to come back to life in the real world.
Jesse's girlfriend, Lisa, finds Nancy's old diary in Jesse's closet in which she had been keeping track of her nightmares and her encounters with Freddy. Reading the diary strikes a chord with Jesse as he is experiencing similar nightmares himself. He goes to his parents in a panic, but they argue and Jesse storms out.
Jesse later finds himself walking the streets late at night and walks into a bar where he runs into his gym coach. His coach takes him back to the gym to run laps as detention. The coach has Jesse hit the showers while he goes back to his office. While he is in his office, the shelves begin to come alive, hurling balls and other sports equipment at him. Two ropes grab him by the wrists and drag him into the shower that begins to fill with steam. Freddy appears among the steam and slashes the coach's back, killing him. As the steam clears, Jesse is the one with the glove on his hand, Jesse screams and the scene passes onto Jesse's house.
Lisa begins to do some digging and uncovers information about Krueger, including the location of the abandoned power plant where he used to work, and where he brought his victims. Meanwhile, Freddy visits Jesse's younger sister, Angela, but when she wakes up, it's actually Jesse standing there with the glove on his hand. Jesse enlists his classmate, Ron Grady, to watch over him while he sleeps. Once Jesse falls asleep, Grady turns out the lights for himself. As soon as Grady is asleep, Jesse awakens and begins to scream in pain as Krueger begins to claw his way out of him. With the door jammed, Grady is helpless against Krueger, who stabs him to his door and slashes down the inside of his torso, gruesomely killing him. When Krueger looks in the mirror it turns out to be Jesse, with Krueger staring back at him from the mirror.
Jesse runs to Lisa's house where she is having a pool party. However, Freddy takes control of Jesse once again and attacks Lisa. Lisa is able to fight off Freddy, who runs from the house and out to the party. Some party guests try to take Freddy down, but are killed immediately. With all the guests cornered against the back fence, he stabs one and throws him through a barbecue. After Lisa saves him from being shot by her father, he vanishes into a fiery ball.
Lisa runs to the old power plant, thinking she might save Jesse there. She finds him and tells him that she loves him and that he can fight from the inside. She then removes Freddy's hat and kisses him. Freddy begins to lose control. As the power plant begins to burn to the ground, Freddy himself starts burning. After he dies, the rest of the power plant suddenly extinguishes. Just when Lisa thinks it is all over, Freddy's burnt corpse begins to move and Jesse crawls out of Freddy's ashes.
The following Monday, Jesse goes back to school. He climbs the bus, finally relieved that it is all over. When the bus begins traveling too fast, Jesse panics and jumps up, only to find out there is nothing wrong; the bus is coming to its regular stop. As he and Lisa rest at ease, Freddy's hand impales through their friend Kerry's chest, killing her, while Jesse and Lisa scream in horror and the bus speeds off the main road and into the open land, just like Jesse's nightmare at the beginning of the film, as Freddy's evil laugh is heard in the background.
Read more about this topic: A Nightmare On Elm Street 2: Freddy's Revenge
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—Charles Dickens (18121870)
“We have defined a story as a narrative of events arranged in their time-sequence. A plot is also a narrative of events, the emphasis falling on causality. The king died and then the queen died is a story. The king died, and then the queen died of grief is a plot. The time sequence is preserved, but the sense of causality overshadows it.”
—E.M. (Edward Morgan)