In a small town, a World War II veteran returns home and finds that his girlfriend, Rosemary, has moved on. Heartbroken, he murders Rosemary and her new lover during a graduation dance, leaving behind a blood-soaked red rose to symbolize his anguish. This brutal crime leaves the town haunted, and the graduation dance is canceled for 35 years. As time passes, the townspeople choose to forget the horrific event, but a new sense of dread looms as the town decides to revive the graduation dance decades later.

Pam MacDonald and her friends eagerly prepare for the festivities, unaware that their night of celebration will be marked by terror. Sheriff Fraser leaves town for a fishing vacation, entrusting his deputy Mark London with keeping an eye on things. As the dance resumes, a masked killer begins stalking and murdering students in a manner eerily similar to the original incident. Panic sets in as the chilling realization dawns that someone or something has returned to finish what was started 35 years ago.