Dr. Robert Toulon (Corey Feldman) and his brainy teenage daughter, Alex (Danielle Keaton), unlock the secrets to an old family formula which brings puppets to life. Unfortunately their secret is stolen by an evil manufacturer, Erica Sharpe (Vanessa Angel) from Sharpe Industries, with devilish plans to mass produce demonic toys and demonic toys and bring them to life - just in time for Christmas. The Toulons and their puppets team-up with a curious police officer, Jessica Russell (Silvia Suvadova). She discovers that the Demonic toysjiave played their games before... with a deadly end: Detective Judith Gray had been violently murdered years earlier by a doll that came to life. Upion his death, a family diary was left by Andre Toulon, the original Puppet Master. In this Diary, the key ingredient to the secret formula is exposed - Toulon Family blood. Robert, Alex and Jessica must find a way to keep the diary and themselves out of the hands of Erica, the satanic CEO of Sharpe Industries. She and her minions will stop at nothing to bring the demonic toys to life all over the world on Christmas Day. The Puppets are back, Six-Shooter, Jester, Blade and Pinhead. Baby Oopsy and the rest of the Demonic Toys return for a wicked battle against the super-charged puppets. It's a fight for the must-have toy of the holiday season.