Silent Night, Deadly Night 5: The Toy Maker

Late one night in December, a young boy named Derek Quinn finds a Christmas present addressed to him on the porch. His father Tom opens the gift and finds a musical orb shaped like Santa Claus; he activates it, causing it to strangle him with retractable cords. As Tom struggles, he slips and falls onto a fireplace poker, his impaled body being found by his wife Sarah a few moments later.
Two weeks later, Sarah takes Derek, who has been mute since his father's death, to a toy store owned by the elderly Joe Petto, a World War II veteran, and his odd son Pino, not realizing Noah Adams, a recently discharged fellow soldier, has followed them. After Derek rejects all the toys shown to him, Derek and his mother leave, prompting Joe to angrily yell at Pino, blaming him for the store's recent failures. While running from his father, Pino bumps into Noah, who buys some toys before leaving. At his home, Noah begins taking apart the toys to inspect their mechanics when he is confronted by his landlord Harold. Late paying rent, Noah gives Harold a Larry the Larvae toy in exchange for a one-day extension. While driving home, Harold is killed when Larry the Larvae crawls into his mouth and bursts out his eye.
The next day, Derek finds another gift on his porch before his mother takes him to a mall Santa (portrayed by Noah, who had taken his friend's shift) Meanwhile, Pino sneaks into their house, but when Sarah and Derek get home early (due to Noah's odd behavior), Pino flees. Sarah confronts Joe about Pino's intrusion, and later decides to let Derek open the present dropped off earlier, but Derek refuses.
Sarah is visited by her friend Kim, and Derek sneaks outside and throws the present in a garbage while they talk. However, Kim's adopted son Lonnie opens the gift and finds roller skates in it. While using the skates, Lonnie is hit by a car and left hospitalized when rockets hidden within the skates cause him to lose control. In a drunken rage, Joe begins beating Pino, accidentally killing him by knocking him down some stairs.
Noah confronts Sarah at a parking garage and is revealed to be Sarah's old boyfriend and Derek's real father, and the two reconcile. At Sarah’s house, Derek’s babysitter Meridith and her boyfriend Buck have sex when Joe has a horde of toys attack them. Sarah and Noah arrive and find a bloody Meridith, who tells them Buck is dead and that Joe has abducted Derek, taking him to the toy store. Noah tells Sarah about Joe's past, saying he was arrested years earlier for booby-trapping toys he gave to children after his pregnant wife died in a car crash.
Sarah and Noah rush to the toy store. Joe attacks Noah with a remote control plane and an acid-squirting water pistol, knocking him out. Hearing the noise, Sarah goes downstairs, finds the toys, and demasks Joe, revealing robotic components underneath his “face” before replacing it with that of Pino. Pino explains to Sarah that Joe created him to replace his dead son, but he could never live up to his father's expectation, and was continually broken and rebuilt by Joe in his drunken rages. Pino says that he wants Sarah to be his mother (sending killer toys to try to kill Derek), then sexually assaults her while frantically screaming.
Sarah manages to stab Pino in the head with a screwdriver, causing him to malfunction. Grabbing a knife Sarah dropped earlier, Pino tries to stab Derek, whom he had placed in a large sack. Noah breaks into the room and starts fighting Pino, distracting him long enough for Sarah to chop him with an axe. Barely functioning, Pino cries for Sarah before grabbing her leg, causing her to stomp his head into pieces.
As Sarah, Derek, and Noah exit, the eyes of one of Joe's partially assembled robots spark ominously.