Ten years after her first encounter with Mr. Nightmare, Anna is home from college. Living at home again brings up painful memories of the past. To help deal with those difficult reminders, Anna turns to her friends-the remaining members of The Nightmare Club. While things aren't what they used to be, it is good to have friends around. But Anna and the others begin to see signs that make them realize the past is not just a memory. Mr. Nightmare is back and is ready to get revenge on the group that banished him from their world ten years prior. And this time he's not alone.

Older now, Anna and her friends must take on Mr. Nightmare a second time. Unlike before, this clash takes place where Mr. Nightmare has even more power. This time, they must defeat Mr. Nightmare inside The Nightmare Realm.