Several years after the events of the Candyman: Farewell to the Flesh, the ghostly serial killer returns once again from beyond the grave, this time, during the eve of Day of the Dead, to haunt a Los Angeles art gallery owner named Caroline McKeever, a distant relative of the Candyman (and also Annie Tarrant's daughter) in order for him to claim her soul so she will be next to him. In the meantime, the Candyman goes about killing all those associated with Caroline (starting with artist Miguel Velasco, his lover Lena, and following with her roommate Tamara) in his usual gory ways with his hook. He also kidnaps her friend David de la Paz and makes it appear to the authorities that Caroline is the one responsible for the killings. Seasoned police detective (who is secretly prejudiced against most minorities) L.V. Sacco is murdered by Candyman while Caroline is in the car, which not only brings the whole local police department down on her head, but puts her in the firing line of Sacco's equally bigoted partner Lt. Det. Samuel Deacon Kraft, who has no intention of bringing her in alive.