In the late 1970s, when a mentally handicapped teenager is abandoned, a gay couple takes him in and becomes the family he's never had. But once the unconventional living arrangement is discovered by authorities, the men must fight a biased legal system to adopt the child they have come to love as their own.

It's been eight years since the events in the second film, we now see that Andy is a teenager who has been enrolled in a military school. Play Pals Toy Company decides to re-release its Good Guys line, feeling that after all this time, the bad publicity has died down. As they re-used old materials, the spirit of Charles Lee Ray once again comes to life. In his search for Andy, Chucky falls into the hands of a younger boy, and he realizes that it may be easier to transfer his soul into this unsuspecting child. Andy is the only one who knows what Chucky is up to, and it's now up to him to put a stop to it.