When a group of escaped convicts come across and old looking inn they decide to hide out there. But the guests at this inn get a new kind of room service when a mysterious potion summons a demon and causes a bloodthirsty zombies to rise from their graves in search of live prey.

Finally released from prison, Elwood Blues is once again enlisted by Sister Mary Stigmata in her latest crusade to raise funds for a children's hospital. Hitting the road to re-unite the band and win the big prize at the New Orleans Battle of the Bands, Elwood is pursued cross-country by the cops.