Eight years after Chucky's second demise, the Play Pals company has recovered from the bad publicity brought about by Chucky's murder spree and resumes manufacturing the Good Guys dolls. The company restores the abandoned factory, where Chucky's mutilated body still remains, and starts releasing a new line of Good Guys dolls. However, the workers inadvertently mix Chucky's blood into a vat of plastic. Since the soul of serial killer Charles Lee Ray still inhabits the remains, the mixture causes Chucky to be reborn. Chucky is unwittingly given to Play Pals' CEO Mr. Sullivan, whom he kills with a variety of toys. He then uses computer records to locate Andy.