Nancy (Heather Langenkamp)is having nightmares about a frightening, badly-scarred figure who wears a glove with razor-sharp "finger knives". She soon discovers that her friends are having similar dreams. When the kids begin to die, Nancy realizes that she must stay awake to survive. Uncovering the secret identity of the dream killer and his connection with the children of Elm Street, the girl plots to draw him out into the real world.