A teenage boy is haunted in his dreams by deceased child murderer Freddy Krueger, who is out to possess him in order to continue his reign of terror in the real world.

Forced into early retirement by a degenerative illness, former baseball player Ray Waller moves into a new house with his wife and two children. He hopes that the backyard swimming pool will be fun for the kids and provide physical therapy for himself. However, a dark secret from the home's past soon unleashes a malevolent force that drags the family into the depths of inescapable terror.