On October 30, 1988, Michael Myers, who has been comatose for ten years since the explosion at Haddonfield Memorial Hospital, is being transferred from Ridgemont Federal Sanitarium to Smith's Grove Sanitarium. During the transfer, when Michael overhears that he has a niece living in Haddonfield, he awakens, kills the ambulance personnel and heads back to his hometown to kill her. In Haddonfield, Laurie Strode's orphaned daughter Jamie Lloyd suffers from nightmares about The Shape and is bullied at school for being the niece of "the boogeyman". On Halloween night, her foster parents Richard and Darlene Carruthers plan to go to a business meeting and leave their teenage daughter Rachel to babysit, forcing her to cancel a date with her boyfriend Brady. Rachel makes plans to take Jamie trick-or-treating, but she declines and they instead settle on buying ice cream after school. Back at Ridgemont, a now aged and scarred Dr. Loomis, who also survived the explosion, learns of Michael's escape and gives chase back to Haddonfield once again. While driving to Haddonfield, Loomis stops at a gas station and diner, where Michael has killed a mechanic for his coveralls, along with a female clerk. After Loomis discovers and fails to negotiate with Michael, a gunfight erupts and Michael escapes in a tow truck, igniting the gas pumps causing an explosion, destroying Loomis's car given by Ridgemont in the process and disabling the phone lines. Loomis continues to pursue Michael on foot. Rachel and her friend Lindsey pick Jamie up after school where Jamie changes her mind and decides to go trick-or-treating that night. Jamie decides on a clown costume when Michael suddenly appears to steal a new mask. He goes after his niece but flees when she screams in horror. Meanwhile, Loomis hitches a ride with an eccentric priest named Reverend Jackson P. Sayer in a pickup truck. That night, as Rachel and Jamie are trick-or-treating, Michael breaks into the Carruthers' house, kills the family dog, and finds out Jamie's identity after finding several photos of Laurie in the house. Loomis arrives in Haddonfield and warns the new sheriff, Ben Meeker, that Michael has returned. They immediately go out to search for the girls. At a power plant, Michael throws an electrician into a transformer, plunging the entire town into darkness. He proceeds to kill most of the town's police force, prompting the locals to form a lynch mob. Meeker and Loomis find Rachel and Jamie and take them to the sheriff's house, where Brady is having an affair with Meeker's daughter Kelly. They barricade the premises as Deputy Logan arrives and Loomis departs to find Michael, who has already snuck into the house. While searching for Michael, the lynch mob accidentally shoots and kills an innocent civilian. After Meeker leaves to respond to the shooting, Michael kills Deputy Logan, Kelly, and Brady as Rachel and Jamie flee to the attic and onto the roof while Michael steals a kitchen knife in the attic. Rachel lowers Jamie down to safety but is attacked by Michael, falling to the ground and losing consciousness. Pursued by Michael, Jamie runs down the street and runs into Loomis. They seek shelter at the school, but Michael finds them and tosses Loomis through a glass door. He chases Jamie through the school, until she falls down a flight of stairs. Michael prepares to kill her when Rachel reappears and subdues him with a fire extinguisher. The lynch mob arrives and agrees to help the girls get out of Haddonfield. Along the way they meet a lone trooper who tells them there is a substation up the road where they will be safe. Michael, who has been hidden underneath their truck, climbs aboard and kills the men, including Earl. Rachel takes the wheel, throws Michael off the truck, and rams into him. Meeker and Loomis arrive with the rest of the lynch mob and the state police, while Jamie approaches her uncle and touches his hand. As he rises, Meeker and the others shoot him until he falls down an abandoned mine. Back at the Carruthers' house, Darlene goes upstairs to run a bath for Jamie when she is suddenly attacked. Loomis hears her cries and sees Jamie, now silent and emotionless, in her clown costume holding a pair of bloody scissors, reminiscent of when Michael killed his older sister. Loomis screams in despair and raises his gun to shoot Jamie, but is disarmed by Meeker. Rachel, Richard, and Meeker look on in horror as Loomis sobs, realizing that the evil inside of Michael has infected Jamie.
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