Following on a few years from the previous film, those little puppets are up to no good again, as they dig up the grave of their former master, Andre Toulon, and bring him back to life with some strange glowing liquid, resembling the stuff from those "Re-Animator" films.
Meanwhile, a group of paranormal investigators have been sent to the Bodega Bay Inn (the setting of the previous film) to find out what's been going on there, seeing as the hotel's previous owner died under mysterious circumstances, and the one survivor from the last film (presumably Paul Le Mat's character Alex) is in an asylum, having gone stark raving mad.
Of course, no sooner have they set up their equipment, Toulon's puppets show up and people start getting bumped off left, right and centre again. All the puppet's from the previous film are here, Blade (the one with the blades for hands), Tunneller (the one with the drill head), Pinhead (the one with the giant hands and small head), Leach Woman (the one who can vomit leaches) and Jester (who I didn't mention in my review of part 1, but doesn't seem to have anything sinister about him), along with a new one, Torch, who has a flamethrower for an arm (where did he come from then?).
Anyway, whilst the remaining investigators are trying to work out where their colleagues have disappeared to, a mysterious man named Eriquee Chaneé (Steve Wells) suddenly turns up, claiming that the hotel belongs to him. But it seems this Eriquee is not who he appears to be, and has an unhealthy interest in the lead investigator Carolyn (Elizabeth Maclella).
Of course, it doesn't take them long to figure out who this Enriqee really is, but with the puppets continuing to bump off more of the group, it seems he has something very special planned for Carolyn, something that even his puppets may think is going too far...
Quite a good sequel, I enjoyed it anyway. There's some fun kills scenes and a couple of nice T&A shots, though I'm not sure why Toulon is such a baddie in this, as in the first film he seemed like this kindly old man, whereas here he seems like a raving psycho. Whether this had something to do with his resurrection I'm not sure, but it is interesting to note that it seems the puppets aren't inherently bad. They do bad things when instructed to but, as with the previous film, are not beyond defying their master when they feel he's crossed the line.
Anyway, despite the discontinuity between films, this is still an enjoyable follow up, which I'd say is about on par with the first, and is everything you would expect from a film featuring killer puppets.