Eight years after the last incident, the Play Pals Toy Company decides to resurrect their previously discontinued line of Good Guys dolls. The company recovers and refurbishes the remnants of the destroyed dolls to restore public confidence in their brand. In doing so, they inadvertently revive the dormant spirit of serial killer Charles Lee Ray, who was trapped within the doll known as Chucky. Chucky returns to life, fully possessed and more determined than ever to transfer his soul into a human body to escape his plastic prison.

Chucky tracks down Andy Barclay, now a teenager enrolled in a military academy, seeing him as the easiest target for his soul-transference ritual due to their past connection. As Chucky infiltrates the academy, he quickly finds a new possible host in a younger cadet named Tyler. Meanwhile, Andy struggles to warn others about the danger posed by Chucky, but his stories about the killer doll are met with disbelief. Andy must protect Tyler and stop Chucky's murderous rampage before he can complete the ritual and escape his doll form once and for all.