This episode is about a workaholic named Marsha who is studying for her exams on Halloween. Her friend Mark wants her to have fun by celebrating the festivities. Marsha declines but eventually she falls asleep and Freddy comes calling. Freddy uses Marsha's guilt of her grandmother's death to get under her skin.
The second half is about a fellow college student who is studying nightmares. He uses Marsha's recurring nightmares of Freddy to further his career. But Freddy has his own agenda.