Plot
Taking place almost a year after The Dream Master, Alice and Dan have now started dating and there is no sign of Freddy Krueger. In the beginning scene as titles roll, we see scenes of Dan and Alice having sex. Afterwards she finds herself in the shower, then being thrown at into a strange asylum. As she walks she finds that she is dressed in a nun's habit with a nametag saying Amanda Krueger She is then attacked by the lunatics but wakes up before anything happens, then at high school graduation we are introduced to Greta, a aspiring supermodel, Mark, a comic book geek, and Yvonne, a candy-striper who is also a swimmer. She only confides her nightmare to Dan, after he tells her about a trip to Europe. He tells her she is all in control of her dreams, and she makes her way to work.
As Alice makes her way to work she finds herself back at the asylum. Alice is wheeled into an operating room on a stretcher, wearing Amanda's uniform, and screaming in pain. As Alice looks around she sees Amanda Krueger on the table, instead of herself, giving birth. As the baby is delivered, Amanda clamors to get to it. The baby breaks free from the doctors and escapes the room. Alice follows it into a church rectory, the same place that Alice defeated Freddy in the previous film. Before she can stop him, the baby finds Freddy's clothes and quickly grows into an adult. Amanda shows up to help Alice, but is disrupted when Freddy slams the church doors closed on her. After these events, Alice finds herself at work, but four hours late.
Alice immediately phones Dan who leaves their friends and rushes over to the diner. Before Dan can make it he falls asleep and Freddy (after transforming Dan into a very literal speed demon) makes him drive into a tanker truck, which explodes and wipes out Dan. Alice, after watching Freddy take possession of Dan, faints in the middle of the street. At the hospital, she is informed that she is pregnant with Dan's child. While recouping, she meets a young boy, Jacob. Yvonne later informs Alice that there were no children on her floor, nor is there a children's ward at the hospital. Freddy begins to kill Alice's friends one by one as they fall asleep. First is Greta, by forcing her to eat herself to death. Freddy then goes after Mark, and only after Alice draws herself into Mark's dream does Mark start to believe Alice. Alice requests an early ultrasound for her baby, and she soon realizes that Freddy is using her child to get into her friend's dreams. Alice also discovers that Jacob is really her unborn son. While Alice is looking for Amanda's body, Yvonne is attacked by Freddy. It's only when Yvonne barely escapes Freddy, thanks to a little help from Amanda's soul, that she accepts what Alice has been telling her. Shortly afterwards, Mark finds a comic depicting the entire events to that point and is drawn into his own nightmare. While there, Mark sees an image of Greta and finds his "dream power", the Phantom Prowler. He attacks Freddy, but is ultimately killed by Krueger and cut to pieces (literally, as he was turned into a paper character in his nightmare).
Alice sends Yvonne to the now-abandoned asylum (former Westin Hills) to release Amanda's soul while she sets out to free Jacob. Freddy pulls her into a M. C. Escher-like labyrinth to try to slow her down. Freddy goes back into hiding inside Alice as she finally catches up to Jacob. Upon the revelation that Krueger has been hiding inside of her the whole time, Alice forces him out, but the strong pain makes her to loses her stength to fight back. After being released by Yvonne, Amanda arrives and instructs Jacob on how to defeat Freddy. Jacob, releasing the power that Freddy has given him, forces himself and Freddy to revert back to an infant. Alice picks up Jacob and absorbs him while the now-infant Freddy tries to escape. Before he can escape, though, Amanda picks him up and absorbs him back inside. Freddy begins to fight from within and the church doors close. A couple of months go by; Alice gives birth to Jacob, and is finally at peace from the nightmares.
In the film's last scene, the children who appear throughout the series and are used as omens of Freddy's presence are shown, humming the familiar song "One, two, Freddy's coming for you..." wearing church outfits. They are next to Alice, her father, Yvonne and baby Jacob.
Read more about this topic: A Nightmare On Elm Street 5: The Dream Child
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