In the midst of a party a reveler croons to the rest of the room and has his hair suddenly pulled off by a curious friend. The bald crooner then has a psychotic break and starts killing everyone. Jerry Zipkin (Zalman King) is wrongly accused of the murders and tries to gather evidence to prove his innocence with the help of Alicia Sweeney (Deborah Winters). He discovers that ten years prior a group of college kids had taken a new form of LSD called "Blue Sunshine," which causes its users to lose their hair and become homicidal maniacs many years after their acid trip is over. Zipkin manages to defeat the crazed bodyguard of a local politician (Mark Goddard) and save the shopping mall discothèque by carefully remembering the advice of the gun shop employee.