A therapist who tries to help a boy suffering from repeated nightmares about Freddy Krueger winds up dreaming about the killer as well. Meanwhile, a cameraman who wants to settle the question of Freddy's existence for good gets drawn into his own news story.

Doug and Roxanne move to Springwood, but while Doug's at work, Roxanne begins to unpack and discovers that a mix-up with the movers has left their house filled with someone else's possessions – in the boxes she finds bloody knives and shredded dresses. Meanwhile, Emily discovers a stack of 19th century love letters hidden behind a panel in her new home, and she begins to envision the relationships of the authors.