Billy Lenz, born with severe jaundice due to a liver disease, is constantly abused by his mother, Constance. Five years later, Constance and her lover murder Billy's father Frank on Christmas Eve and bury the body in the house's crawlspace. Billy witnesses their scheme so they lock him in the attic. Since her boyfriend is impotent, Constance rapes 12-year-old Billy to conceive another child, and gives birth to a daughter named Agnes. On Christmas Day 1991, Billy escapes from the attic and disfigures eight-year-old Agnes by gouging out her eye. He then brutally murders his mother and her lover. He is caught by police eating cookies made out of his mother's flesh and is sent to a mental asylum, while Agnes is taken to a local orphanage. Fifteen years later, Billy escapes from his cell on Christmas Eve and heads to his former home, now a sorority house for Delta Alpha Kappa at Clement University in New Hampshire. At the house, Clair Crosby, one of the sorority girls, is murdered in her bedroom by an unknown figure. Meanwhile, Megan Helms begins to hear noises and goes up to the attic to investigate. Upon finding Clair's corpse, Megan is attacked and killed by the same assailant. In the living room, the other sorority sisters, Kelli Presley, Melissa Kitt, Heather Fitzgerald, Dana Mathis, and Lauren Hannon, along with their housemother Mrs. Mac, receive a threatening call from the killer. Clair's half-sister Leigh Colvin soon arrives, searching for her. Kelli's boyfriend Kyle Autry arrives as well but is kicked out when Kelli discovers Megan's sex video with him. When the power goes out, Dana goes to the main breaker under the house but encounters the figure in the crawlspace and is killed. When they realize Dana's ambush by the figure, the remaining sorority sisters and Leigh go outside to find her, only to find their fellow sister Eve Agnew killed in her car. With the police unable to arrive in time due to a snowstorm, Kelli, Melissa, and Leigh decide to stay inside the house while Heather and Mrs. Mac flee. In the car, Heather is murdered, and Mrs. Mac is impaled by a falling icicle. While Kelli and Leigh descend to the garage to investigate, Melissa is attacked and killed by the assailant. Kelli and Leigh return upstairs and find Lauren's eyeless corpse. Kyle returns to the house, and the three go to investigate the attic; while ascending the ladder, Kyle is dragged into the attic to his death by the assailant, who is revealed to be Agnes, now an adult. As Billy enters the attic, Kelli and Agnes struggle, leading the two of them into the empty space between the walls of the house. As the killers converge toward Kelli, Leigh helps her escape before they start a fire, leaving Billy and Agnes to burn to death. Later, as Kelli and Leigh recover at the hospital, Billy, who is partially burned, kills the morgue assistant. While Kelli goes for an X-ray, Agnes emerges in her hospital room and kills Leigh. When Kelli returns to her room, Agnes appears through the ceiling and attacks her, but Kelli uses a defibrillator to kill Agnes. Moments later, Billy enters through the ceiling and chases Kelli to the stairwell. They briefly fight, ending with Kelli pushing Billy off the railing where he is subsequently impaled on the tip of a Christmas tree, killing him.
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