Freddy Krueger has slain many children and teenagers, and is currently on the loose, but after a police officer catches Freddy trying to kill his daughters, Freddy is arrested. During the trial, the judge unfortunately discovers Freddy was never read his rights, so the judge must let him go, but it does not end there.

A girl (Lori Petty) accidentally kills her friend by using a magical gem she stole from her that lets whatever she is imagining happen.