Spencer and Carlos get killed by Freddy in Springwood, and John Doe is knocked out while trying to save spencer. Maggie and Tracy flee Springwood with the still-unconscious John, who is attacked by Freddy. John thinks he's really Freddy's son, and that why he hasn't been killed. He's wrong, and ends up being killed anyway, though not before Freddy reveals that he was using John to lead him to his daughter. Back in the other town, Freddy reveals to Maggie that she's actually his daughter, and now he intends to start his killing spree anew. Maggie then comes up with a plan to pull Freddy into the real world, and she does so. Then she blows him up with a pipe bomb.
Trivia: Shock Rock legend Alice Cooper has an uncredited appearance in this movie as Freddy's stepfather.
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