The film takes place after the original film, where McCreedy has been locked in a psychiatric hospital after blowing up the film studio because of the Hobgoblins, which occurred at the end the first film. Kevin and his friends are now in college, and their Professor introduces them to McCreedy, who warns them that it is still possible to be attacked by Hobgoblins. Despite McCreedy's warning, Kevin and his friends re-encounter the Hobgoblins and must fight against them to save their lives.Made on an impossibly low-budget, the film is full of inside jokes and the same cheap special effects from the the original. The characters are all dressed like its still the 80's. Fantazia now does internet sex instead of phone sex with Kyle, Nick has been dishonorably discharged from the army, Daphne is still a **** and Kevin is still henpecked by his frigid girlfriend Amy. Hobgoblins 2 also delivers even more stock shots of explosions and car crashes than the original.A DVD bonus feature, "Hobgoblins 2, What Were They Thinking?", features the original Hobgoblins cast critiquing the new actors who recreate their roles. Director Rick Sloane discusses how this film was originally planned to go into production two years after the original, and instead 20 years later, it was shot using the same script.