A fake psychic channeller gets real messages from the dead as Freddy arrives and possesses her body so that he can continue killing. It's up to an apprentice and another phony channeller to excise Freddy from her soul.
The second half of the episode is about a high school reunion, where Freddy's old classmates return to Springwood. Freddy gets revenge on a former teenage sweetheart who humiliated him. This is where a writer got the idea to write the A Nightmare On Elm Street script.