Freddy Palmer breaks out of his restraints inside the illegal laboratory where he is being experimented on, and kills his captors before returning to his woods. Cassie Johnson was blamed for Freddy's murders and has been in an institution for the criminally insane. She breaks out and hides with an all female punk rock band. Cassie convinces the band of her innocence and they join her quest back to the woods to stop Freddy from ever killing again. There they are joined by Belinda, whose twin sister was killed by Freddy a year ago. Freddy goes on another killing spree, cutting up drifters and rangers until Cassie and her surviving friends attack him in a brutal final confrontation that is certain to see a great deal of blood and guts spilled.

When a social worker takes a group of non-violent criminals to the woods as a progressive rehabilitation program that will get them a reduced sentence for their crimes, it seems like she has thought of everything and nothing can go wrong. But Freddy Palmer is an insane killer who wears a mask and likes to chop up every person he sees with his trusty axes, and he is back in these woods.