Alice Johnson has returned to Springwood, Ohio, after her last encounter with Freddy Krueger over the immortal soul of her son, Jacob. Returning to settle the affairs of her now deceased father, Alice discovers that Springwood is falling apart. Children and teenagers are being abducted and killed, only it appears that Freddy's not responsible. These victims are being killed while they're awake. But everything is not as it appears, as this new serial killer is actually in league with Freddy, and now is the perfect time for him to settle his old score with Alice and Jacob.
Meanwhile, Neil Gordon, a former psychiatrist at Westin Hills Mental Hospital and a friend of Krueger's first nemesis, Nancy Thompson, is being hunted through the dreamworld by Krueger. But something's protecting him. What?