Todd and Terry are identical twin brothers. One night at a drive-in theater in 1974, young Terry sees his mother Maddy and her date begin kissing inside the car. He wakes his brother and they sneak out of the car. Apparently triggered by his mother's promiscuity, Terry takes a hatchet and murders a teenager having sex with his girlfriend in the backseat of their car. He then frames Todd by smearing blood onto him and placing the hatchet into his hand. Todd, too traumatized to speak in his own defense, is found guilty and committed to an asylum. Ten years later, in 1984, a now-adult Terry lives happily with his mother in a sprawling but secluded apartment complex named Shadow Woods. On Thanksgiving Day, Terry's long dormant murderous rage is revived when his mother gets engaged to her fiancé Brad, who owns the complex. Terry also learns that Todd has escaped from his mental hospital and may be heading home. Dr. Berman and her assistant Jackie from the hospital arrive at Shadow Woods to search for Todd. Terry murders Brad by chopping off his right hand and splitting his head open with a machete. He then impales Jackie (while implying he is intending to once again frame Todd), and soon after cuts Dr. Berman in half in the woods. He discards his bloody shirt after showering. He then visits his new neighbor Andrea, who is babysitting for their other neighbor Julie in the latter's apartment. Andrea attempts to seduce Terry but he seems uninterested, at which point Julie and her date Bill arrive home. Meanwhile, Terry's girlfriend Karen bumps into Todd, who has arrived at Shadow Woods, and she believes he is Terry. When Todd reveals his true identity, she flees to tell her friends Gregg and Artie. After she also tells Terry, he heads off alone in search of his twin brother, while Karen, Andrea, Gregg and Artie go to Andrea's house to party. Upon learning from Terry that Todd has returned to Shadow Woods, Maddy begins to panic and drink heavily while cleaning the apartment and trying (but failing) to reach Brad on the phone. Todd comes across Dr. Berman's body and becomes emotional. He takes Dr. Berman's gun and goes off in search of his twin brother. Back at Julie's apartment, Terry first decapitates Bill and then stabs Julie to death. Meanwhile, Todd goes to Maddy's apartment and tucks his passed-out mother into bed. Terry spies on Gregg and Andrea playing tennis, before murdering both of them while they're having sex by the swimming pool. Artie is held at gunpoint by Todd, who tries to convince him that his brother is the real killer. Todd flees when Terry sees him, causing Artie and Terry to give chase. When Artie discovers Terry's assortment of weapons, Terry stabs him in the neck with a carving fork. Terry reveals his true nature to Karen and starts chasing her around the apartment complex. After seeing Jackie's and Artie's bodies, Karen flees to Julie's house and discovers her dead body. She escapes from Terry and takes Julie's baby with her. Maddy finds Terry's bloodied T-shirt in the garbage bin before making the horrifying discovery of Brad's body, taking Brad's gun with her. Terry chases Karen to the swimming pool, where she finds Andrea's and Gregg's bodies. Todd arrives and fights his brother inside the pool. As Todd is pulled out of the pool by Karen, Maddy appears and shoots Terry, killing him. Maddy consoles Todd in the belief he is Terry and she has killed Todd. Upon realizing that she has actually killed Terry and not Todd, she becomes hysterical and shoots herself in the head while Karen flees with the baby. Police sirens are heard in the distance, leaving Todd's fate ambiguous.
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