Teenagers in the small town of Springwood start experiencing terrifying nightmares, all involving the same horrific figure: a disfigured man with a glove of razors on his hand. The nightmares begin to affect their waking lives, with some of the teens meeting gruesome fates. Nancy, one of the teenagers, starts to investigate the origin of the terrifying figure haunting her dreams and finds a connection between her friends' deaths and their shared childhood past at a preschool. As she digs deeper, Nancy encounters Quentin, who also shares similar nightmares and is equally desperate for answers.

Together, Nancy and Quentin uncover that the man haunting their dreams is Freddy Krueger, a former preschool janitor who was accused of heinous crimes against children. Driven by relentless vengeance, Krueger now seeks to exact his revenge from beyond the grave, targeting the children of the parents who took justice into their own hands. Nancy and Quentin must find a way to survive while discovering the truth about Krueger's dark past and how to defeat him before they too fall victim to his deadly wrath. The clock is ticking as they race to stay awake and figure out how to put an end to their living nightmare.