Preceded by: A Nightmare on Elm Street 3: Dream Warriors; Proceeded by: A Nightmare on Elm Street 5: The Dream Child
Film Poster.
Plot summary
Kristen (Tuesday Knight, who replaced Patricia Arquette), Joey (Rodney Eastman), and Kincaid (Ken Sagoes), have been released from Westin Hills and are now living normal lives and attending high school. Kristen has managed to make some new friends -Alice Johnson (Lisa Wilcox), a young, bright girl who is a frequent daydreamer; Sheila, a brainy, quiet girl with asthma (Toy Newkirk); and Debbie (Brooke Theiss), a tough girl who hates bugs. She has also found herself a boyfriend, Rick (Andras Jones), who happens to be Alice's brother.
Kristen begins to have bad dreams and feels as though Freddy has once again come back from the dead. During one of her nightmares, she pulls Kincaid and Joey into her dream. In school the next day, Kincaid and Joey confront Kristen about pulling them into the dream.
As it turns out, Freddy is indeed back. Kincaid wakes up one night, only to find himself locked in the trunk of an old junked car. When he opens the hood, he realizes that he is in a salvage yard - the same one that Freddy's body was buried in. Kincaid spies his dog, Jason, digging and urinating in the ground nearby. The ground begins to shake and the plot where Freddy lies begins to sink deeper into the ground and open up. Inside the grave, the bones begin to grow flesh. As soon as Freddy is resurrected, a pile of junked cars comes crashing down on him. Freddy quickly recoups and kills Kincaid. A little later, as Joey is watching television, he begins to feel something moving beneath his waterbed. When he pulls back the sheets he finds a woman swimming in his bed. Before he can react, Freddy bursts through and kills him.
The following day at school, Kristen is concerned when her friends fail to show up for class. At home that night, her mother gives her a sedative to help her sleep. When Kristen falls asleep this time, on Alice's advice, she tries to convert nightmares into pleasant dreams, to no avail. Even in her good dreams, Freddy appears and ruins everything. Kristen eventually finds herself in Freddy's boiler room. It is explained that Kristen is the last child from Elm Street, and Freddy needs her help to get more children. When Freddy is about to kill her, she screams for Alice. Alice appears suddenly in the boiler room just as Krueger kills Kristen. Before Kristen dies, she sends her power, the power to pull people into her dreams, to Alice. Before the power can reach her, it passes through Freddy first, taking a part of him with it.
As Alice tries to understand what has happened, and who exactly Freddy is, her friends begin to die. First, Sheila and Rick are killed. While taking a test, Alice accidentally pulls Sheila into a dream where Freddy is waiting; the same thing happens to Rick later. After his death, Alice teams up with Dan Jordan (Danny Hassel), who was one of Rick's closest friends. Together with Dan, Alice tries to get to Debbie, their last surviving friend, before Freddy finds her. Unbeknown to the two teens, Freddy is able to control their movements. Trapping Alice and Dan, Freddy is able to reach Debbie and kill her (by transforming her into a giant cockroach and trapping her inside a roach motel) before Alice and Dan intervene.
Following a car accident, where Dan is injured and rushed to the hospital, Alice returns home to prepare for one final battle with Freddy. Alice goes to sleep to help Dan before Freddy can kill him. As Alice and Dan search for Freddy, the doctors wake Dan and he is pulled from the dreamworld. Alice, facing Freddy alone, attempts to use all of her abilities against him. Nothing seems to work. It isn't until she is reminded of the final verse of a children's rhyme about the "Dream Master" that she is finally able to defeat Freddy, by making him see the evil that is inside. Alice releases the tortured souls that Freddy imprisoned. Krueger's clothes fall lifelessly to the floor. The film ends with Dan and Alice at a fountain some time later. She tosses a coin in and makes a wish. As she and Dan depart, she decides to keep the wish to herself as Freddy's image appears in the ripples left in the fountain from the tossed coin.