Eric Draven (Brandon Lee) rises from his grave a year after dying to take revenge on the four gangbangers who killed him and his fiance Shelly. At the same time, he causes his friend Sarah's mother to realize that she needs to be there for her daughter, and it works out. After killing all four of the men, Eric realizes that his job is not done, as they were operating under orders from Top Dollar (Michael Wincott), who wanted to clear out Eric and Shelly's apartment (among many others) so that he could execute his Devil's Night- Halloween night when he and his men set fire to several buildings in the area.Eric confronts Dollar and kills several more of his men. Sergeant Albrecht (Ernie Hudson) helps Eric by leading police to Dollar's lair. Afterwards, Dollar realizes that the only way to hurt Eric is by wounding the crow who leads him around, and kidnaps Sarah to lead Eric to the church. Even though Dollar's right hand man Grange (Tony Todd) shoots the crow, Eric does not go down easily, and the crow fights back too, killing Dollar's sister Myca (Bai Ling). Albrecht also shoots Grange to death. On the rooftop, Eric confronts Dollar. After a one sided fight concludes, Dollar tells Eric that every man has a devil, and that Eric brought a smile to his face. Before Dollar can deliver the final blow, Eric tells him that he has a gift for him- 30 hours of pain, suffered by Shelly between her rape and death, all at once. Dollar, whether or not he realizes that he was truly a monster for his evil deeds, falls to his death, being impaled by three horns on a gargoyle.
Eric, having finally avenged the deaths of himself, his true love, and without knowing it, several others, returns to his grave for a well deserved rest...and Shelly is there waiting for him.