Adult Andy Barclay returns home and owns Chucky’s head who is still conscious and deformed after being repeatedly tortured by Andy as a vengeance for crimes committed. Meanwhile, Nica Pierce spent the last four years in an institution of mental illness after Chucky staged his family killing. After several years of intense therapy, she really believed she was responsible for crimes and that Chucky was just a manifestation of her psychosis.
As a result of her “discovery”, the doctor in charge of her treatment, Dr. Foley, recommends that she be transferred to another institution with a slightly more lenient regime. Arrived there, Nica becomes part of a therapy group that consists of Malcolm, Angela, Claire and Madeline. Dr. Foley introduces a new therapy technique involving a “Good Boy” doll. Most patients are very troubled by the doll, but Madeline reacts differently and takes her slipper and treats her like her baby.
Nica is visited by Tiffany Valentine who informs her that her niece, Alice, has died and gave her a good boy puppet. That night, Chucky wakes up and finds Nica trying to commit suicide. The next day, Nica wakes up and realizes that her wrists have been patched, and the message “do not rush” is written in the blood. She then discovers that Angela has apparently died as a result of a suicide, and in the bloodstream is the message: “Chucky did it!”