NOTE: This spoiler was submitted by Jeremy
The film starts with three people hung up on crosses in a cornfield. Each of them have bags over their heads, and someone is filming this. The cameraperson takes a lighter and drops it on the ground, igniting a fire that burns all three people alive.
Dylan Collins (Robert Daniel Sloan) is lying in bed, looking a bit spooked. For a brief moment, he feels the presence of a demonic-looking child lying behind him.
Deputy "So & So" (James Ransone) visits a church to talk to a priest regarding what he encountered in the last movie and what happened to the Oswalt family. He hasn't been on the force since the murders, and he believes there is a demonic presence at work, and he wants to find whatever help he can get in preventing anyone else from suffering the same fate.
Dylan is at a supermarket with his mother Courtney (Shannyn Sossamon) and twin brother Zach (Dartanian Sloan). The two boys play with toy guns, and Zach gets defensive when Dylan "kills" him despite Zach claiming to have already done so to his brother. Courtney spots a suspicious-looking man eyeing her and her boys. She feels he is following them and she tells the boys to run. They run out of the supermarket as the man chases them, escaping him after Courtney tells a security guard that the man touched one of the boys. As they leave, the man calls someone and says, "Yeah, it's definitely her."
The family has moved into a new home that used to be a church where a family was brutally murdered. Dylan suffers from horrifying nightmares, making him go to the basement and seek help from a group of children belonging to the demon Bughuul (Nicholas King). The main boy, Milo (Lucas Jade Zumann), guides Milo and shows him a home video that one of the other children made. This video shows a family hung upside down by their feet before they're eaten alive by an alligator. Dylan is too horrified to watch these videos, despite Milo's insistence to watch another.
So & So is investigating the string of murders that the Oswalts became part of. On his computer screen appear flashes of the church murder, and pictures of Dylan, followed by a red symbol belonging to Bughuul. The laptop turns off, and Bughuul appears in the shadows behind So & So. He catches a brief glimpse of the demon before the laptop turns back on and the symbol appears to be bleeding.
So & So goes to the church home to burn it down, as he's been doing to the other houses in connection to the murders (including the Oswalt home), only to stop when he finds the Collins family there. Courtney thinks he's working with the man from the supermarket, and she's even less pleased to hear he's a private investigator, thinking her ex-husband sent him to get the boys back. So & So says he only wants to investigate the property, which Courtney lets him do. He goes through the darkened halls and sees a goblet moving. He throws something at it and sees it's just a rat. So & So then flashes his light and sees the shadows of children, followed by a brief glimpse of Bughuul.
That night, Dylan has violent nightmares about more murders. He goes to the basement and is met by Milo and more children. They show him a video of a family on Christmas morning, enjoying the day together, only to get buried alive in the snow and be frozen to death. Milo tells Dylan that he has to watch all the videos to get the nightmares to stop.
Zach becomes envious of Dylan, claiming he can see the children too.
The boys' father Clint (Lea Coco) arrives to take the boys back from Courtney, bringing state troopers with him. So & So holds them off by calling their bluff when he sees they don't have a warrant to be there, and if they arrest So & So, it'll draw unwanted media attention since he was previously arrested years back, and he could twist it into a child kidnapping case. The troopers leave, but Clint vows to return.
So & So advises Courtney not to leave because she would be deemed a flight risk, but he also wants to prevent her and the boys from getting murdered since the same thing happened to the Oswalts. Courtney and Dylan invite So & So to stay for the night. He can't sleep and he joins Courtney outside while she has a smoke. He determines that Clint beat Dylan before, which Courtney confirms by saying that he put the boy in the hospital. They go back inside and briefly make out.
Dylan watches another video, this time of a family being tied in their kitchen, sitting in a pool of water, and then electrocuted. Zach continues feeling resentment toward Dylan, calling him a pussy.
So & So meets with Dr. Stromberg (Tate Ellington) to discuss what he knows about the murders. Stromberg shows him a ham radio that has a recording of a Norwegian girl speaking to her mom while playing the piano, and the mother can be heard screaming in terror. Stromberg says the girl was telling her that Bughuul couldn't hear her playing over the sound of the mother's screams.
Zach gets Dylan outside the house and viciously beats him up until he admits that Zach is better. Courtney scolds Zach for doing it, but he tells both his brother and mother to fuck themselves and he calls her a cunt. She sends him to his room.
The last video Dylan watches is from Milo, and it takes place in the church. He nailed his family to the ground in a circle as Bughuul brought forth a bunch of rats. Milo gathered the rats and laid them on the family's stomachs and covered them with goblets before placing hot coals on each of them to get the rats to eat through the family's bodies and make them bleed out. Dylan says he is done watching these videos for good, and all the children take on demonic appearances. Milo says it's fine, and that the videos weren't meant for him.
Clint returns with a custody warrant and forces Courtney to give up the boys and return home with him. She does so, and they all have dinner at Clint's home. He forcefully shoves mashed potatoes into Dylan's mouth before apologizing.
So & So tries contacting Courtney and even arrives at Clint's home. The man grabs his rifle and starts beating So & So before telling him that if he ever contacts Courtney again, he'll take it out on her and then kill So & So.
Zach is now being groomed by Bughuul's children. He films the family outside as they have a picnic. Dylan notices something suspicious and he takes Courtney's phone to send a message to So & So.
That night, Courtney, Dylan, and Clint are hung up on crosses like in the film's intro. Zach films them and burns Clint to death. Before he can proceed with the other two, So & So arrives and slams Zach with his car. So & So gets Dylan and Courtney down while Zach tries to get up.
Zach follows the three into the house with a sickle. He cuts off a few of So & So's fingers but he gets away with Courtney and Dylan. Zach tries to film the murders again, but So & So breaks the camera. Panicking, Zach runs to the basement to try and find a new camera. The children appear and say that Bughuul is going to be mad. The demon appears and places his hand on Zach's shoulder. He starts to decompose and turn into a skeleton, which is projected on a screen upstairs that Courtney sees before the whole house catches fire. She runs outside with Dylan and So & So, where she breaks down and cries for Zach.
So & So returns to his motel room and starts packing his things. The ham radio he took starts picking up a frequency. He hears voices saying, "He takes the children. He takes the children. Deputy...Deputy..." Bughuul then pops out to deliver one last scare.