To save it from being put to death, Professor Albert Dooley takes home a dumb duck from the research laboratory, which accidentally was exposed to X-rays. At home he discovers that it lays now golden eggs. Since he's broke all the time, his family welcomes this new source of income greatly, and tries to keep it secret. But their greedy neighbors become suspicious.

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.