When young Victor's pet dog Sparky (who stars in Victor's home-made monster movies) is hit by a car, Victor decides to bring him back to life the only way he knows how. But when the bolt-necked "monster" wreaks havoc and terror in the hearts of Victor's neighbors, he has to convince them (and his parents) that despite his appearance, Sparky's still the good loyal friend he's always been.

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 religeous zealot responsible for the deaths of his many followers. His goal is simple - he wants the angelic Carol Anne; but the love of her family and the power of psychic Tangina once again unite, along with an elderly native American, to fight for her life.