Read more about Alice Johnson at: Wikipedia
Official Site: New Line Cinemas
Kristen (Tuesday Knight), Joey (Rodney Eastman), and Kincaid (Ken Sagoes) have been released from the Westin Hills Asylum and are now living normal lives and attending high school. Kristen has managed to make some new friends: Alice Johnson (Lisa Wilcox), a young, bright girl and a frequent daydreamer; Sheila Kopecky (Toy Newkirk), a brainy, quiet girl with asthma; and Debbie Stevens (Brooke Theiss), a tough girl who hates bugs. She has also found herself a boyfriend, Rick (Andras Jones), a martial arts enthusiast who is also Alice's brother.
Kristen begins to have bad dreams and feels as though Freddy has once again come back from the dead. During one of her nightmares, she pulls Kincaid and Joey into her dream as she explores the deserted Elm Street house. The boys try to convince her that Freddy has not come back, and puts her hand on one of the furnace, showing that the boiler room is empty and cold. Kincaid's dog Jason then jumps out of the boiler and bites Kristen's arm. Kristen wakes up and discovers the bite marks on her arm; while Kincaid wakes up and sees blood dripping from Jason's mouth. In school the next day, Kincaid and Joey confront Kristen about pulling them into the dream. Kincaid wakes up one night and finds himself locked in the trunk of an old junked car. When he opens the hood, he realizes that he is in the same salvage yard that Freddy's body was buried in. Kincaid spies his dog, Jason, digging and urinating fire in the ground nearby. Freddy then resurrects from the ground after which Kincaid knocks a pile of junked cars down on him. Freddy quickly recoups and kills Kincaid by stabbing him in the stomach. Later that night, Joey is attacked and killed by Freddy on his waterbed after being tricked into thinking a naked woman was swimming within it.
The following day at school, Kristen is concerned when her friends fail to show up for class. She confides to Alice about nightmares. Kristen hits her head and passes out when she discovers both of her friends missing, being attacked by Freddy but revived in time. After she learns of the deaths of Kincaid and Joey, Kristen goes to the actual Elm Street house, with Rick, Dan, and Alice. Rick tells Dan the story of Freddy, and Alice reveals a part of a rhyme by the name of The Dream Master. Alice suggests to Kristen that she is in control of her own dreams. However, Alice also looks down at the ground and sees something, a sidewalk chalk drawing of the house, that only Kristen has been able to see. Clearly, she senses something. At home that night, her mother secretly slips a sedative into her dream to forcibly put her to sleep. Kristen replies angrily to this, and runs upstairs in fear. She quickly falls asleep. On Alice's advice, she tries to convert nightmares into pleasant dreams. At first this works, and she proceeds to dream about a sandy beach vacation spot. While she meets a child named Alice creating a sand castle in her dream, Freddy appears and ruins everything, eventually taking Kristen to his boiler room. It is explained that Kristen is the last child from Elm Street, and Freddy needs her help to get more children. Freddy taunts her long enough to make her scream for Alice. Alice appears suddenly in the boiler room and Kristen tries to get her to wake up but to no avail. Krueger attempts to kill Kristen's friend in front of her, but she jumps in front of Alice, and Freddy throws Kristen into a furnace and collects her soul along with the other Dream Warriors. Before Kristen dies, she sends her power to pull people into her dreams, to Alice's body.
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