Known Demonic Toys
- Baby Oopsy Daisy - The foul-mouthed, perverted doll in a similar manner to a Cabbage Patch Kid or other "baby" doll.
- Jack Attack - The evil jack-in-the-box with a grotesque killer-clown face attached to it.
- Grizzly Teddy - The monstrous teddy bear.
- Mr. Static - The demonic toy robot with real shooting lasers and flamethrowers.
- Zombietoid, or Zomb.i.e Joe - The blond-haired GI Joe action figure that makes a loud scream and kills people with his machete
- Divoletto - The smiling, cloaked ancient toy doll that makes a robotic ticking noise whenever he moves. He also makes a giggling sound now and then.
Judith Gray and Matt Cable — two police officers who are dating—wait at the Toyland Warehouse to arrest illegal gun dealers Lincoln and Hesse. Judith tells Matt about a strange dream she has been having: Two boys—one good, one bad—playing war. She also reveals that she is pregnant. The confrontation with the gun dealers ends with Matt shooting Hesse, and Lincoln killing Matt. Lincoln and Hesse hide inside the Toyland Warehouse and split up; Judith goes after Lincoln.
In the security office, security guard Charneski places an order at a chicken delivery service run by his friend Mark Wayne. Mark arrives at the warehouse with Charneski's order. Meanwhile, the toys that surround a dying Hesse come to life and brutally murder him. Judith and Lincoln become locked inside the storage closet but are freed by Mark and Charneski. Charneski goes to call the police but is also graphically murdered by the toys, with Mark and Judith watching in horror. A toy named Baby Oopsy Daisy draws a pentagram around Charneski's corpse.
A runaway named Anne who had been hiding in the air-conditioner shafts, joins the group. Mark explains that the doors don't open till morning but can be opened up from the office. Judith can't leave Lincoln as she has to bring him in, so Mark and Anne head to the office together. They are attacked by Mr. Static and Baby Oopsy Daisy. Mark fights back but Baby Oopsy Daisy kills Anne. Mark finally shoots Jack Attack's head off with Charneski's shotgun. Judith enters a dollhouse and is transported to the lair of a kid who reveals that he is a spirit of a demon who wants to become human. In order to do that, he has to impregnate a woman so that his soul can transfer into the woman's egg, where he has to eat the baby's soul and take over its shell. If the baby doesn't make it through the birth, he has to be buried like a seed, and once grown, he will start the process over again. The last time he was born was 66 years ago. The baby didn't make it through the birth so he was buried underneath the warehouse, unable to get out until Hesse bled onto the area.
Lincoln escapes while Judith is in the dollhouse. He catches up to Mark and is about to kill him when Judith appears and shoots Lincoln. Suddenly, all of the toys around them come to life. The pair begin shooting them to death, including Baby Oopsy Daisy. Grizzly Teddy turns into a man-sized monster and chases after Judith. Judith becomes trapped and is about to shoot herself when a toy soldier helps her escape. However, Judith is caught by the demon, who ties her up on the pentagram. Mark is attacked by Grizzly Teddy but manages to kill the monster. The demon, now in the form of a man, is about to rape Judith but the toy soldier shoots it, cuts Judith free, and turns into a boy . The demon transforms back into his own kid form and the two kids begin fighting, explaining the war card game from Judith's dream. As the demon is about to kill the boy soldier, Judith stabs him with the boy soldier's sword and the demon is sent back to Hell. Before heading back to Heaven, the boy soldier reveals that he's the spirit of the son she's going to have. Judith reunites with Mark and the two wait for the doors of the warehouse to open and let them go.
an unknown stranger with a pair of gloved hands picks up the pieces of the destroyed toys and starts stitching them together. The only toys the perpetrator could fix correctly were Baby oopsie daisy and Jack Attack. The unidentified man then puts the toys in a crate, and is handed over a suitcase full of cash by another man, who then leaves with the toys. Also with Dr. Lorca is his sweetheart Lauraline and her stepson David, and a little woman named Lillith, who is a psychic of some sorts. Dr. Lorca's driver, Eric accidentally drops a crate that Dr. Lorca wants brought into the house, revealing the Demonic Toys inside it. It is revealed that Dr. Lorca is still collecting oddity toys. He's arrived because Caitlin called and told him about an oddity toy she found within the castle that's able to move. The castle's current owners seldom come there, meaning they're superstitious of everything that's happened in there. The owners decided to empty and sell it to Italian government to make it a historical landmark and keep it open for the public. Caitlin takes them inside the castle and gives them its history. The doll itself was hand carved out of wood with a mixture of fabric elements. Caitlin opens the box and shows them the doll Divoletto. Mr. Butterfield examines the toy and claims it is the oldest toy he's ever seen, made possibly in the 14th century. Caitlin then shows them how it moves. Just tap a wand on the side of the box a couple of times and then it will come to life. After a while, the toy finally moves. Caitlin believes that there are magnets in the wand and when the box is tapped, it sets off the springs and mechanisms inside of Divoletto. However, Lillith thinks differently. Eric suddenly runs in the room and tells them that their cars are gone. Since everything is closed and have no transportation to get back to Rome, Caitlin suggests that they stay at the castle for the night. Meanwhile, Lillith examines Divoletto to catch a vision of some sorts, and sees a vision of the future where Divoletto's killing them all.
David then smashes Divoletto's head with a shovel, but it's revealed that Divoletto was one of Fiora's personal demons. The demon then sucks Fiora's spirit out of Lillith and brings her through the portal back to hell. The demonic toys then attack them and David cuts their heads off with the shovel, killing them. The next day, David, Caitlin and a spooked out Lillith leave the castle, with the demonic toys remains so no one else can find them, along with the clay vessels containing Fiora's personal demons. The sound of glass shatter is heard, and the painting of Fiora at the castle starts whispering, implying that Fiora's revenge personal demon has been released.
Brick Bardo hitchhiking to get to the town of Pahoota, where he tries to find a girl named Nurse Ginger, to prove to her that she is not alone. Meanwhile, the film cuts to Judith Grey, who has a nightmare about the events that happened in the previous film a year before. Ever since the events that took place a year before, Judith has been watching the Toyland Warehouse, believing that the toys are still alive. Meanwhile, a drunken bum enters the warehouse to shelter from the rain, and starts to mess around with a clown tricycle, until he gets knocked in the head with a box of toys, causing him to hit his head on the ground, killing him. However, his blood continues to flow over to the place where the demon was buried, and brings back: Baby Oopsy Daisy, Jack Attack, and Mr. Static, but Grizzly Teddy is replaced by a new toy named Zombietoid - a blonde GI Joe action figure with a sword as a weapon.
Judith, who's now inside the building, sees the toys in full view, but is then arrested for breaking into a secluded building while serving out a suspension. After the police leave, the toys force the new security guard Ray Vernon to help them with their needs. Ginger who spends her time on a kitchen counter all alone is being harassed by a sleazy reporter for an interview and so she reluctantly agrees to one so he'll leave her in peace. After he leaves, a big spider appears and as Ginger screams, Brick suddenly shows up and shoots it dead. Then a surprised Ginger asks Brick how he's so tiny like her, which results in both characters recapping their stories. Although Ginger explains that it's herself who's been left at a doll sized height by aliens, instead of Bunny, which was what occurred in the actual story of Bad Channels.
Meanwhile, Judith, who now knows about Nurse Ginger and Brick Bardo's history, bribes the news reporter to tell her where they're at, and tells her they are in Pahoota. Judith, after having a deal with Bardo and Ginger to help her kill the toys, go to the warehouse and Ginger initially doesn't believe the tale about the toys being really alive. Meanwhile, the toys kill a blonde hooker and makes her bleed on the place where the demon was buried. As Judith and friends enter the building, a fight begins, ending with Judith weakenly shooting Ray in the head (killing him). Brick, who has made a promise to Judith (cop to cop thing), continues to finish that promise, but Zombietoid knocks his gun out of his hand and it falls under a pile of crates, and has his hands and feet tied to two toy trucks, and Ginger tied on to a clock when they are separated inside the ventilation shafts.
Baby Oopsy Daisy explains to Brick that once midnight strikes, the Demon's soul is going to go inside Baby Oopsy Daisy, so he can rape Nurse Ginger, make the baby, eat its soul from the shell, and become a human. As Baby Oopsie Daisy is about to kill Brick, Ginger breaks free, cuts him loose, and gets carried away by Zombietoid, who continues to go after Brick. Brick and Zombietoid begin fighting, until Zombietoid's machete gets caught in an electric socket, killing him. After using a hockey stick to retrieve his gun, Brick continues on and finds Jack Attack, whom he kills by shooting its face with a single bullet, causing Jack Attack to die laughing, then leaving only his torso intact.
Brick finally gets to the dollhouse shortly after the stroke of midnight and sees Baby Oopsy Daisy undressing Ginger in preparation for sex. Baby Oopsy Daisey demands Brick to drop his firearm or he will quickly kill Ginger with cervical dislocation. Brick complies and tosses his gun out of his reach. Baby Oopsy Daisey tries to penetrate Ginger but is once again interrupted, this time due to a hard kick to his groin by Ginger after he unwittingly mentions that he is now possessed by "The Master" and has a penis. The low blow causes her to be released from Baby Oopsy Daisey's grasp, giving Brick the opportunity to quickly summon his gun where he then shoots the bewildered Baby Oopsy Daisey several times, killing him. Brick continues to call the police and tells them that Judith Grey died in the line of duty, and leaves, along with Nurse Ginger to a cab that is on its way back to Pahoota.