On October 30, Devil's Night in Detroit, Sergeant Albrecht (Ernie Hudson) is at the scene of a crime where Shelly Webster (Sofia Shinas) has been beaten and raped, and her fiancé Eric Draven (Brandon Lee) then died on the street outside, having been stabbed, shot, and thrown out of the window. The couple were to be married the following day, on Halloween. As he leaves for the hospital with Shelly, Albrecht meets a young girl, Sarah (Rochelle Davis), who says that she is their friend, and that they take care of her. Albrecht tells her that Shelly is dying.
One year later, a crow taps on the grave stone of Eric Draven; Eric awakens and climbs out of his grave. Meanwhile, a low level street gang, headed by T-Bird (David Patrick Kelly), is setting fires in the city. Eric goes to his old apartment and finds it derelict. He has flashbacks to the murders, remembering that those responsible were T-Bird and his gang: Tin Tin (Laurence Mason), Funboy (Michael Massee) and Skank (Angel David). Eric soon discovers that any wounds he receives heal immediately. Guided by the crow, he sets out to avenge his and Shelly's murders by killing the perpetrators.