Molly is now a freelance photographer in New York. She runs across a woman at an art show that looks familiar. She goes to L.A. to find out that this woman is in fact, her mother. She also finds out she has a sister. The reunion is short-lived when her mother calls her to tell her that her sister is in danger and later, gets killed in an explosion. Molly must once again, become Angel to try and find her sister.
It's been many years since Freddy Krueger's first victim, Nancy, came face-to-face with Freddy and his sadistic, evil ways. Now, Nancy's all grown up; she's put her frightening nightmares behind her and is helping teens cope with their dreams. Too bad Freddy's decided to herald his return by invading the kids' dreams and scaring them into committing suicide.