One year after the Poltergeist (1982 film), Cuesta Verde is being evacuated and turned into an archaeological paranormal dig centered around the spot where the Freelings' home stood before it imploded. The excavation leads to the discovery of a cave by a ground crew. Its existence is revealed to psychic Tangina Barrons (Zelda Rubinstein), who tells a friend of hers, Taylor (Will Sampson), a Native Americans in the United States shaman. After investigating the cave for himself, Taylor realizes that Rev. Henry Kane (Julian Beck), a deceased, insane preacher, has located Carol Anne and goes to defend her.