Mike is released from psychiatry, when he agrees with the doctors that the terrible happenings in his past were just in his imagination. But once he's free, he contacts Redge and they team up to hunt down and eliminate the "Tall Man", who plunders the graveyards and abducts the sleeping with help of his terrible gnomes. A beautiful strange girl starts to appear in Mike's dreams. He assumes she's in danger and needs their help - will they find her before the Tall Man can do her any harm?

The Tall Man, that imposing menace from Morningside Mortuary, is back and once again haunting the thoughts of the now-adult Mike and his friend, ex-Ice Cream vendor Reggie. The two continue their hunt for the mysterious figure and in his path of destruction encounter a variety of dangerous situations, friends and enemies. They also must contend with the resurrected dead plus a growing number of the infamous and deadly silver spheres which aid the Tall Man as he sets his sights on indoctrinating Mike and finishing the fight begun so many years ago.

Frank Falenczyk loves his job. He just happens to be the hit-man for his Polish mob family in Buffalo, New York. But Frank's got a drinking problem and when he messes up a critical assignment that puts the family business in peril, his uncle sends him to San Francisco to clean up his act. Frank is not a touchy-feely kind of guy, but he starts going to AA meetings, gets a sponsor and a job at a mortuary where he falls for the tart-tongued Laurel, a woman who is dangerously devoid of boundaries. Meanwhile, things aren't going well in Buffalo where an upstart Irish gang is threatening the family business. When violence erupts, Frank is forced to return home and with an unlikely assist from Laurel, faces old rivals on new terms.

The undertaker Fred is bankrupted and misses his former wife Helen. She has left him and is going to marry Captain Winston...