This sequel to Mr. Boogedy picks up some time after the event of the first film. The Davis family has moved on from its horrifying start to embrace their new life in their New England community. As the town prepares for a local festival, Carleton Davis (Richard Masur) is asked to be guest of honor. However, his rival in the novelty business, Tom Lynch (Eugene Levy), is jealous and highly upset by this news. As Tom tries to sabotage the upcoming festivities, Carleton's two sons accidentally unleash Mr. Boogedy into the small town again. Mr. Boogedy soon takes Carleton's wife for himself, forcing the remaining Davis family members to band together to send him back to where he belongs. In their journey to send Mr. Boogedy back to where he came from, Tom finds Mr. Boogedy's magical coat and tries to use it for his own fiendish plans.