Several years after a traumatizing series of events involving a possessed doll, a young boy named Andy Barclay is placed into foster care, as his mother undergoes psychiatric evaluation. Struggling to overcome his past, Andy must start anew in the home of loving but strict foster parents. Unbeknownst to him, the doll manufacturer has recovered the remains of the Chucky doll to dispel the negative publicity from the prior incident. In the process of refurbishing the doll, an electrical accident occurs, bringing the malevolent spirit of serial killer Charles Lee Ray, inhabiting Chucky, back to life. Driven by the same sinister motive to transfer his soul into a human body before becoming permanently trapped in the doll's form, Chucky sets his sights once again on Andy.

As Andy struggles to adjust to his new life and make friends in school, Chucky wastes no time in tracking down his former owner, leaving a trail of destruction in his wake. Chucky infiltrates Andy's new home, using cunning and violence to further his own ends. Meanwhile, Andy's attempts to warn his foster parents fall on skeptical ears, leaving him increasingly isolated. With the looming threat of Chucky's relentless pursuit, Andy must find a way to protect himself and convince those around him of the impending danger before it is too late.