Six years have passed since the Night of the Demons (1988 film), and many of the bodies left at Hull House were recovered except for Angela's; rumor persists she descended bodily into Hell. As it turns out, her parents committed suicide five years later after receiving a Halloween card with Angela's signature. A year later her sister Melissa, nicknamed 'Mouse' (Merle Kennedy), is now staying at St. Rita's Academy, a Catholic Church boarding school for troubled teenagers. She frequently has nightmares about her sister. Rumors spread around the school regarding Mouse, started by the school bully, Shirley (Zoe Trilling). However, the Head teacher nun at the school, Sister Gloria (Jennifer Rhodes), tries to put an end to it.