The third Nightmare continues Freddy's story with the nightmare of a teen named Kristen,who narrowly escapes becoming another of Freddy's victims. Her near death dream is thought to be a suicide attempt and lands her in a psychiatric hospital with other "suicidal" teens who also seem to share the same boogeyman in their dreams. Enter Nancy, the sole surviver of the first Nightmare movie. Nancy has just accepted a position as a research scientist at a psychiatric institution and is working with a group of children who all share nightmares of Freddy. She discovers that one of the children (Kristen) has a special gift which may help them destroy Freddy forever.
Trivia: During Joey's nightmare, he is seduced by a topless nurse who then captures him before turning into Freddy. As originally conceived, only her face was going to transform at first, thus having Freddy's burnt male head on top of an otherwise perfect topless female body in order to create an eerie, otherworldly look. The actress portraying the nurse even took part in some test shots and performed the scene under heavy prosthetics to make her face look exactly like Freddy's. However, the effect was cut as the crew felt it looked far too weird, and that it diminished the moment when Freddy fully appears on-camera in the scene.
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