Picking up just over a year after the events of Part 1, Steve and Dianne Freeling, and their two youngest children, (played by the original cast members) have been staying with Dianne's mother (Geraldine Fitzgerald), who the kids refer to as Grandma Jess.
Steve is now eeking out a living as a vacuum cleaner salesman, they're broke, as the insurance company don't believe that their house got sucked into another dimension, and therefore are unable to afford a place of their own and what is worse, Steve won't let them buy a TV set (not surprisingly).
So far they have been free from any more unwanted spiritual visitors, but after Dianne's mother dies the problems begin. Carol-Anne starts receiving calls on her toy telephone from strange ghostly voices, strange vortex's materialise in the kids bedroom, then they get plagued by some ghostly old priest (played by Julian Beck) who, for some strange reason, has a bizarre fascination with their youngest daughter (ooooooeeeeeerrrrrrrrr!).
Fortunately, help is at hand. An old Indian named Taylor (Will Samson) shows up, who specialises in fighting these kinds of evil spirits, along with Tangina Barrons from Part 1 (Zelda Rubenstein again), who believes that the appearance of the ghostly priest has something to do with the discovery of an old tomb underneath the old cemetery that their previous house was built on (and you thought that the Jehovah's Witnesses where a pain in the arse).
Mayhem soon erupts, as the evil spirits try to take Carol-Anne again and the whole family ends up trying to battle the evil forces on their own turf. As far as sequels go this is ok, but there's nothing really to recommend it, unless of course you really enjoyed the first film and wanted to view the entire series of films.
Although, be warned. The scene with the giant tequila worm is so ridiculous it was cringeworthy. Not to mention the scene where Bobby's braces suddenly sprout extra wires and encompass the whole family, which wasn't much better.