The film begins with two men on their motorcycles driving away from Pumpkinhead. One of the men hits a tree branch in their path, falling from his motorcycle and allowing Pumpkinhead to catch up to him. As the man is being killed, the film cuts to a man in a log cabin who seems to share the pain inflicted by Pumpkinhead on the fallen man. The surviving man, named Dallas, rides to the log cabin, and the man who conjured Pumpkinhead, begging him to call the demon off. Pumpkinhead smashes through the window and Dallas attempts to fend him off by shooting him with a small pistol with little effect, and is clawed in the chest by the demon. When Dallas realizes that his bullets have no effect on Pumpkinhead, he swears to take the summoner with him, shooting the man and killing him, causing Pumpkinhead to vanish. Ed Harley then appears telling Dallas that Pumpkinhead will return and there will be no place to hide.
Five years later we are shown the family of the Hatfields and McCoys ongoing feud started because of a car in the 30's. The Hatfields then trash the McCoy wedding. Jody Hatfield sneaks out to see her true love, Ricky McCoy. Ricky brings his sister, Sarah, to look out for him and Jody. The two then start to make out. Jody's brothers then find and kill Sarah by accident. Jody's brothers try to kill Ricky. Ricky then finds his sister's body in the woods and goes to Haggis for help.Haggis tells him of the price it costs to summon Pumpkinhead and Haggis is shown Talking to Ed Harley's spirit and Haggis states that her choice does not matter in the end but only the summoner must make the decision to kill Pumpkinhead. The two invoke Pumpkinhead to kill the Hatfields. At the end of the film most of the Hatfields are killed, as well as some of the McCoy family. Ricky realizes what he has done and takes Pumpkinhead with him to fall down a well. This is the first film in the franchise that does not imply that Pumpkinhead is still alive.