A Nightmare on Elm Street 2 is a 2016 American horror film which is a sequel to the A Nightmare on Elm Street reboot directed by Alexander Aja and starring Anna Kendrick as Nancy Holbrook, Cristin Milioti as Kristen Parker and Ron Perlman as Freddy Krueger. The film had a sequel, A Nightmare on Elm Street 3.
Kristen Parker is troubled by nightmares in which she sees a badly burned man dressed in a red and green striped sweater and a fedora hat chasing her and slashing at her with a razor glove. He catches her and slashes her across the arms; in reality, Kristen's mother finds her using a razor blade to slit her wrists in a seeming suicide attempt. Kristen is then committed to the Westin Hills Psychiatric Hospital.
At the hospital, Kristen meets the other patients, who are all having similar dreams; an amateur puppeteer and sleepwalker named Phillip, a tough guy named Kincaid, a former drug addict named Taryn, a mute named Joey, wheelchair bound Will and aspiring actress Jennifer. Kristen is then introduced to the sleep therapist; Nancy Holbrook, who wins her trust. Nancy is working with Dr Neil Gordon, who has failed to try and convince the patients that their dreams cannot harm them. He tells this to Nancy, who warns him not to be so sure.
That night, Kristen has another dream in which she sees the burned man. Somehow, she pulls Nancy into the dream too, who is horrified to see the man chasing them. He recognizes her as well and tells her that he's been missing her. Nancy manages to wake them both up and tells Kristen that the man is Freddy Krueger, and explains their history together. Nancy is puzzled by Kristen's ability to pull others into her dream.
Nancy tries to get Gordon to prescribe the patients a drug named Hypnocil which will supress their dreams, but he is unwilling to. The following night, Phillip starts sleepwalking again and accidentally falls from a widow to his death. The staff think that his death was merely a tragic accident, but the other patients are fearful. Joey later falls asleep in his room, where he sees an attractive nurse coming into his room and having sex with him. Freddy suddenly rips through her stomach and kidnaps Joey, deciding to toy with him rather than kill him quickly. The others then find that Joey is comatose.
Gordon decides to go ahead with Hypnocil, but disagrees with the hospital manager Dr Simms and both he and Nancy are then fired. The patients are put on mandatory nightly sedation, but orderly Max finds Jennifer in the TV room after her curfew. Knowing she is afraid, he agrees to pretend he didn't see her and leaves. Jennifer unknowingly dozes off and gets only static on the TV. When she tries to change the channel, Freddy bursts through the screen and attacks her. Max hears her screaming and enters to find her head rammed through the screen.
Nancy and Gordon meet a nun named Sister Mary Helena, who tells them that the only way to defeat Freddy is to lay his bones to rest. Gordon convinces Nancy to consult her father, Alan Holbrook, as he is the only person who knows where Freddy's bones are. He agrees to help them, just as they learn about Jennifer's death. Nancy returns to the hospital and they decide to organize a group dreaming session in an attempt to rescue Joey from Freddy.
While Holbrook and Gordon head off to find Freddy's remains, the others enter the dream but become separated. Tamryn realises that she is behind Jake's bar, which is the place she used to inject drugs. She tries to run, but alley only grows continuously longer. Freddy appears and her needle marks begin to pulsate. He then catches up to her and stabs her to death.
Will is overjoyed to find that he can walk in his dream, but a wheelchair appears and starts to chase him, eventually running him down. Freddy then ties Will to the chair and pushes him into a pit of spikes. The others reunite and find Joey and try to free him, but Freddy appears and introduces them to his "pet," a demon-like manifestation of the group's fears.
Meanwhile, Holbrook takes Gordon to an old scrap yard where he buried Freddy's bones. When they dig them up, Freddy senses that he has been disturbed and leaves the dreamworld to inhabit his earthly form. He fights off Gordon and throws Holbrook onto a spike, impaling him to death. With Gordon unconcious, Freddy returns to the dream world to kill the others, where Kincaid beats the monster down and tosses it into a pit of fire. As Freddy corners them, Neil pours holy water on Freddy's bones and throws a cross on top, finally laying him to rest. Freddy screams and falls into the pit of fire, where he perishes. Nancy meets her father, who tells her that he has crossed over. They have a tearful farewell before he moves on into the afterlife.
At Holbrook's funeral, Gordon spots Sister Mary Helena standing nearby. When he goes over, she vanishes, and he sees that the grave she was standing next to belongs to "Mary Helena-Amanda Krueger." With Freddy defeated, the patients are able to sleep soundly once more and are allowed to go home.
Anna Kendrick - Nancy Holbrook
Cristin Milioti - Kristen Parker
Ioan Gruffud - Dr Neil Gordon
Bruce Greenwood - Alan Holbrook
Ron Perlman - Freddy Krueger