Tobe Hooper directs this intense story of four friends on a double date who go to the local carnival, and decide it would be fun to remain behind and spend the night in the fun house, little dreaming the night of horror that awaits.
Meanwhile Richie sneaks in the room and steals the money of the manager of the place.
But thanks to a little supernatural help from Freddy, the Dream Master drags Schneider into the shower, strip him naked and slap his arse with wet towels yes for real! Then he wishes he were dead.
His father riles him up and he kills Richie and goes after the rest of the kids.