A precocious girl, her nasty parents, two punk-rock losers and a weak-kneed salesman inadvertently become the guests of two ghoulish senior citizens in their dark, haunted mansion.

The Freeling family move in with Diane's mother in an effort to escape the trauma and aftermath of Carol Anne's abduction by the Beast. But the Beast is not to be put off so easily and appears in a ghostly apparition as the Reverend Kane, a religious zealot responsible for the deaths of his many followers. His goal is simple - he wants the angelic Carol Anne.