Following on from Part 4, young Rick Myers (Gordon Currie) is being questioned by the police about the mysterious deaths of his fellow co-workers at the lab, and the deaths of his friends at the hotel. Needless to say, the police do not believe his story about little monsters and killer puppets, but finding no motive for why he would want to kill anyone, are forced to release him.
His new boss, Dr Jennings (Ian Ogilvy), does think there might be something in his story about the puppets, so decides to break into the Bodega Bay Hotel (the setting of the last film, and most of its predecessors) with some heavies and steal them. Hoping he can discover what their secret is and take credit for it himself.
But, it seems some of the little Demons from the last film are still kicking about and so Jennings's men, Rick and his girlfriend find themselves fighting for their lives once more. Fortunately, the puppets, are still in the hotel, and are on the case trying to hunt the creatures down, and so the group have to hope that the puppets get the Demons, before the Demons get them.
Filmed straight after Part 4, the film basically carries on and serves up more of the same. Whilst it was good seeing the cast of the previous film re-united, as well as some interesting supporting cast members, including B-movie actor Clu Gallagher and British actor Ian Ogilvy, the film doesn't really get going until after the half way mark, and the plot proves to be slightly less entertaining second time around, being essentially a rehash of the last movie.
As you've probably guessed, this was intended to be the final Puppet Master film, only it turned out not to be the case as they decided to do another one a few years later. One other observation is that the Torch puppet, who was was strangely absent from part 4, is back in this one with no explanation as to where he was. But perhaps I'm over analysing things.
On a pure entertainment level, it's certainly very watchable, though it isn't quite as good as Part 4.