The story has news anchor Karen White (Dee Wallace) spending some time at 'The Colony' after meeting rapist/mutilation murderer Eddie Quist (Robert Picardo) in a peep show booth at an L.A. adult book store. After Eddie is shot and apparently killed by the cops in front of Karen, she experiences nightmares and sexual dysfunction. So, at the suggestion of Dr. George Waggner (Patrick Macnee), Karen and her husband Bill Neil (Christopher Stone) head for the wooded retreat. Wouldn't you know, everyone at 'The Colony' is a werewolf? (One might have surmised something was amiss when the ancient John Carradine tries to kill himself by walking into a beach party campfire while screaming "I want to burn!") Bill is bitten by a werewolf while walking in the woods, is seduced by Eddie's nymphomaniac sister Marsha (Elisabeth Brooks) and both transform into werewolves during sex. Karen's friend Terry comes to 'The Colony', but is killed by Eddie, who has regenerated back to life and escaped from the morgue. As Karen is about to be killed by a gathering of werewolves inside a barn, Terry's lover Chris (Denis Dugan) arrives with a shotgun filled with silver bullets. Chris rescues Karen, shoots Eddie, Dr. Waggoner and a few other werewolves and sets the barn full of the remaining werewolves on fire. While escaping, Karen is bitten by a werewolf whom Chris shoots and kills (the werewolf turns out to be Bill). Karen transforms herself into a werewolf on the air at the beginning of a newscast in order to convince people of the threat posed by the werewolves. She is shot and killed by Chris in the studio. The reaction of the viewers is apathetic. Some bar patrons believe it was just special effects. Marsha is seen at the end of the bar ordering a hamburger, cooked rare.
Thanks, Evil Ed!