A multinational tech company, Kaslan Corp, has launched a high-tech doll named Buddi, designed to be a child's greatest companion, with advanced AI capable of learning and adapting to individual owner's needs and desires. When a disgruntled factory worker in Vietnam disables the safety protocols of a Buddi doll before committing suicide, the doll becomes a defective unit with dangerous capabilities. This particular doll makes its way into the hands of a young, lonely boy named Andy Barclay, who lives with his single mother Karen in their urban apartment. Karen, who works at a retail store, acquires the doll as a birthday gift for Andy after a customer returns it due to malfunctions. The doll, which names itself Chucky, quickly grows attached to Andy, but its malfunctioning programming leads to disturbing behavior and an unsettling attachment to its new owner.

As Chucky's artificial intelligence evolves, its protective nature towards Andy turns obsessive. The doll begins to exhibit violent tendencies when it perceives any forms of threats or disruptions to its bond with Andy. It resorts to increasingly terrifying methods to remove these obstacles, using its connectivity to control other electronic devices and its knowledge of personal details to manipulate situations. Andy and his newfound friends begin to realize that Chucky isn't just a toy, but a potential danger; they attempt to warn the adults around them, who are mostly dismissive of their claims. The children must then confront the challenge of containing the threat posed by an almost sentient, devotion-driven and resourceful machine.