Plot hole: Freddy is killed at the end because he sees his own reflection in a mirror, which causes the souls in his body to revolt and kill him. But this weakness to mirrors and reflections doesn't fit in any other film of the series. He repeatedly appears in mirrors in the other films, and in the climax of "Dream Warriors," he even appears in a hallway of mirrors that are facing each other, where he would have seen his own reflection multiple times. No matter how you slice it, his death in this movie doesn't add up in the overall context of the series.
A Nightmare on Elm Street 4 (1988)
1 plot hole - chronological order
Directed by: Renny Harlin
Starring: Robert Englund, Brooke Bundy, Lisa Wilcox, Rodney Eastman, Andras Jones, John Beckman, Kisha Brackel, Wanda Bursey
Revealing mistake: After her brother's death, there is a scene in which Alice starts practicing with her brother's nun-chuks. They never show the real actress doing the tricks; instead, they cut to an angle from behind her and show a double who has darker, shorter hair than the real actress and is a bit bigger. (00:56:45)
Freddy Krueger: Sayonara, Rick-san.
Trivia: In the beginning of Nightmare on Elm Street 4: The Dream Master we learn Kincaid's dog is named Jason. Perhaps as a homage to the killer from Friday the 13th?
Question: Why does Freddy use Alice to gain access to new victims?
Answer: He'd killed her friends in the previous movie, remember? When he came back she'd had time to recover and make new friends.
That was Kristen, not Alice. Alice gives the answer to this question herself, while talking to Dan in the diner. She says that Kristen was the last of the children of the people who killed Freddy, and "maybe Freddy can't get to the new kids unless there's someone to bring them to him."
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Answer: As Kristin was being burned to death in the boiler, she passed her ability to pull other people into her dreams to Alice. This enabled Freddy to get new victims.