When bachelor Walter Davis is set up with his sister-in-law's pretty cousin, Nadia Gates, a seemingly average blind date turns into a chaotic night on the town. Walter's brother, Ted, tells him not to let Nadia drink alcohol, but he dismisses the warning and her behaviour gets increasingly wild. Walter and Nadia's numerous incidents are made even worse as her former lover David relentlessly follows them around town.
Teenagers in a small town are dropping like flies, apparently in the grip of mass hysteria causing their suicides. A cop's daughter, Nancy Thompson, traces the cause to child molester Fred Krueger, who was burned alive by angry parents many years before. Krueger has now come back in the dreams of his killers' children, claiming their lives as his revenge. Nancy and her boyfriend, Glen, must devise a plan to lure the monster out of the realm of nightmares and into the real world...
Dream demon Freddy Krueger is resurrected from his apparent demise, and rapidly tracks down and kills the remainder of the Elm Street kids. However, Kristen, who can draw others into her dreams, wills her special ability to her friend Alice. Alice soon realizes that Freddy is taking advantage of that unknown power to pull a new group of children into his foul domain.
When the girl that detective Joe Hallenback is protecting gets murdered, the boyfriend of the murdered girl attempts to investigate and solve the case. What they discover is that there is deep seated corruption going on between a crooked politician and the owner of a pro football team.
Arthur, that irrepressible drunk, tries to sober up and get a job. Meanwhile, Ralph Marolla is conniving to trick the hapless boozer into marrying his daughter so he can gain entrée to Arthur's $750 million fortune.