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A Nightmare on Elm Street 3 is a 2018 American horror film directed by Scott Spiegel and again starring Ron Perlman as Freddy Krueger. This was the last film to star Anna Kendrick as Nancy Holbrook, reprising her role from the previous two films; A Nightmare on Elm Street and A Nightmare on Elm Street 2. Perlman would later return in the Friday the 13th crossover Freddy vs. Jason.

Plot

Following the events of the previous film, Kristen, Joey and Kincaid have been released from Westin Hills Psychiatric Hospital and Nancy Holbrook has also left, hoping to finally move on from Freddy Krueger. The others keep in contact, but drift further apart as they now go to different schools. Kristen meets a new group of friends, consisting of the asthmatic Sheila Kopecky, tough girl Debbie Stevens, and comic book nerd Rick Johnson. 

Elsewhere, Dr Simms, who was previously in charge of Westin Hills, is found dead, and Dr Neil Gordon reads about his death in the paper. Gordon assumes it is a natural death but decides not to worry about it. That night, while Gordon sleeps, his house catches fire and he dies. Max, an orderly from Westin Hills, is seen dozing at the wheel of his car while the radio makes mention of Gordon's death. Suddenly, the report changes to reporting a car crash and the death of a driver, who fell asleep at the wheel. Max's car veers off the road and collides with a tree, killing him.

Both Nancy and Kristen learn of the deaths and become worried. Kristen accidentally pulls Kincaid and Joey into a dream with her, much to their anger. Kincaid tells Kristen that they all want to leave that part of their lives behind, and Joey assures her that Freddy isn't back. However, the following night, Kincaid has a dream and finds himself in a scrap yard; the same place Freddy's bones were buried. Freddy suddenly claws his way out of the ground and tells Kincaid he's back. Kincaid tries to run, but runs straight into Freddy, who then stabs him in the gut. 

Meanwhile, Joey is nodding off on his waterbed and feels something beneath him. Pulling back his covers, he sees a naked model swimming about in the water. Suddenly, Freddy bursts through the sheets and drags Joey into the waterbed, stabbing and drowning him. His body is found the following morning by his horrified mother. Kristen concludes that Freddy is indeed back.

That night, Kristen takes a bath and falls asleep. In the dream, she finds herself in a boiler room, where Freddy appears and tells her he needs her. Kristen is puzzled and also asks how he returned. He tells her it doesn't matter and chases her. When he catches her, he tells he has big plans in store. As he tries to restrain her, Kristen pulls Nancy into the dream. Freddy shoves Kristen inside of a boiler, burning her to death. Before she dies, Kristen tells Nancy to get Freddy for her. Nancy then wakes up, while Kristen's charred corpse in found in her bath tub.

Nancy comes back to Springwood for Kristen's funeral and meets her new friends. She overhears them confessing that they are all having similar nightmares and realises that the cycle is starting over; soon Freddy will start killing them. Nancy gathers them together and tells them about Freddy, offering to help them. The group doesn't believe her and tell her to get lost.

The next day in school, Sheila falls asleep at her desk. In the dream, Freddy kisses her and sucks the life out of her; in reality it resembles an asthma attack, and Sheila dies. Rick tries to convince Debbie that maybe Nancy was right, but she calls him crazy. He later falls asleep and finds himself in a comic book like world. He starts to jump from rooftop to rooftop, until Freddy appears and starts chasing him. Eventually Rick seems to lose his imaginary superpowers and falls from a building. In the real world he falls from the roof of his house and breaks his neck.

Debbie finally decides to ask Nancy what to do, and they meet Rick's friend Dan Jordan. While Nancy ponders how Freddy returned, she is again visited by the ghost of his mother, Amanda Krueger, who tells her that even though Freddy was dead, the Westin Hills survivors were still afraid of him, giving him the power to return. Amanda tells Nancy that Freddy's new body is formed from the souls of those he has killed, which may be key to destroying him. Meanwhile, Debbie falls asleep at the gym and Freddy drops a weight on her head, killing her.

Nancy decides to enter the dream herself to put an end to Freddy and Dan comes with her. They encounter Freddy, who engages Dan in a brutal hand to hand fight (Dan is a martial artist). Freddy ultimately wins however by gutting Dan. He then corners Nancy and reveals to her that he needed Kristen so that he could steal her ability to pull others into dreams, so that his reach would be able to extend beyond the children of Elm Street. Nancy realises that Freddy is going to steal souls from children all throughout the world. Remembering what Amanda said, Nancy rips Freddy's sweater open to reveal his torso, made up of the souls of his previous victims. Nancy recognizes a number of her former friends and convinces them to help her finally destroy Freddy.

Freddy slashes Nancy across the chest, telling her that he'll kill her before beginning his murderous campaign. Suddenly, the souls in his torso start to revolt and tear him apart. Freddy screams in pain as they rip his body apart. Freddy's battered old clothes fall to the floor as he finally dies. Nancy succumbs to her wound and her soul leaves with the other liberated spirits, while Freddy's soul is dragged into Hell. With Freddy finally dead, Elm Street is released from his murderous grip.

Cast

Anna Kendrick - Nancy Holbrook

Cristin Milioti - Kristen Parker

Ioan Gruffud - Dr Neil Gordon

Ron Perlman - Freddy Krueger

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