Nine years after the original and they FINALLY got round to making a sequel. Several years on from the evnts of the first film, young Mike Pearson (played this time by James LeGross) has spent most of this time at a mental institution, after the authorities didn't believe his story about graverobbing tall men, killer spheres and zombie dwarfs.
After finally getting released, he meets up with his old friend Reggie (played once more by Reggie Bannister). Believing that the Tall Man is still harvesting bodies from unsuspecting funeral parlours, Mike tries to convince him to go on the road with him and help hunt him down. Reggie initially refuses, but after an encounter with the Tall Man's minions, quickly agrees.
Loading up with home made flame throwers and some awesome 4-barreled shotguns, they follow the trail of destruction the Tall Man has left in his wake and aided by a strange girl named Liz (Paula Irvine), another victim of the Tall Man who appears only in Mike's dreams, they're lead to the small town of Perigord, where the Tall Man (Angus Scrimm reprising his role) has been busy setting up shop.
Since his arrival, more than half the towns population have mysteriously died. The local priest knows that the strange funeral director is somehow behind the spate of mysterious deaths, but only manages to get himself killed when he tries to stop him.
Mike and Reggie finally manage to hook up with Liz in person, and together they attempt to stop the Tall Man once and for all, battling more zombie dwarves and flying spiked spheres in the process, along with gas masked grave robbers and demonic embalmers, before a final confrontation with the Tall Man himself.
A very worthy sequel to the original, with all the elements that made the first film so great. If you liked the original Phantasm, you'll enjoy this equally as well.