| Director | Mary Lambert |
|---|---|
| Genre | horror film, zombie film |
| Runtime | 100 min |
| Country | United States |
| Budget | $8 million |
| Box office | $17.1 million |
A few years after the events of the first film and following the accidental death of his mother Renee Hallow-Matthews, 13-year-old Jeff Matthews and his veterinarian father, Chase, move to Ludlow, Maine, Renee's hometown. He's introduced to the belligerent town sheriff, Gus Gilbert, and his stepson, Drew, whom Gus abuses relentlessly. Jeff also draws the ire of local bully Clyde Parker, who tells him the story of the Creed family and the legend of the Miꞌkmaq Indian burial ground.
One night, Gus shoots and kills Drew's beloved dog Zowie after the dog disturbs him during sex. Drew asks Jeff to help him bury Zowie in the Miꞌkmaq burial ground to see if the rumors are true that it can resurrect the dead. Zowie does indeed return from the dead but is uncharacteristically fierce. Chase treats Zowie for his gunshot wound, which refuses to heal; even more bizarre is the fact that Zowie has no heartbeat. Chase sends a sample of Zowie's blood to a lab. It turns out that Zowie's cells have completely deteriorated and are no different from those of a dead canine.
Jeff and Drew go to the Pet Semetery on Halloween for a night of horror stories with local boys. When Gus finds out that Drew's mother Amanda allowed him to go despite being grounded, he rushes to the cemetery and breaks up the party. He attacks Drew, but just as he is about to hit him with a grave marker, Zowie suddenly appears. Zowie fatally mauls Gus, whom the boys subsequently bury at the Indian burial ground. Gus returns to life; he now moves stiffly and rarely speaks, but treats Drew better. Over time, Gus becomes increasingly crude and sadistic, sexually assaulting Amanda and brutally skinning the pet rabbits for dinner.
Zowie breaks out of the veterinary clinic and kills three kittens before entering Chase's home and attacking him. A day later, Jeff encounters Clyde, who is about to sever Jeff's nose using the wheel spokes of his own bicycle when Gus shows up. He sends Jeff home, then murders Clyde as Drew looks on. Gus then pursues Drew to their house, where he is trapped with the savage Zowie. Drew escapes through a window just as Amanda arrives home in her car, and the two take off. Gus pursues them at high speed in his squad car, eventually killing them both by ramming their car into an oncoming potato truck. Gus then returns to Clyde's body and puts it in a body bag, intending to take it to the burial ground as well.
After Drew's funeral, Jeff decides to reanimate Renee by using the Indian burial ground's power. Gus exhumes her corpse and brings it to Jeff at the burial ground. When Chase hears that Renee's grave has been robbed, he rushes to the Gilbert house. There, he is attacked by Zowie and Gus, and he shoots them both dead.
Upon coming back to life, Renee stabs and kills Marjorie Hargrove, the Matthews' housekeeper. Jeff confronts the undead Renee in the attic, and they embrace. Chase arrives home and urges Jeff to get away from Renee, who says she wants to spend quality time with Chase. An undead Clyde arrives and, after knocking Chase out, tries to kill Jeff — first with an axe and then with an ice skate. Renee locks Chase, Jeff and Clyde in the attic, which she then sets on fire.
Jeff kills Clyde with a severed livewire and then breaks down the attic door to escape. Not letting both Jeff and Chase leave, Renee says that she wants the three of them to work things out. Renee wants Jeff to stay and join her in death, saying she loves him. Jeff drags Chase out of the house as Renee is destroyed by the flames while shrieking "Dead is better!" Later, a recovering Chase locks up his veterinary clinic before he and Jeff leave Ludlow behind.