Twelve years later in New York City, Igor, who survived the fire, reemerges and opens a new wax museum. His hands and legs have been badly crippled in the fire and he must rely on assistants to create his new sculptures. Meanwhile, spunky reporter Florence Dempsey, on the verge of being fired for not bringing in any worthwhile news, is sent out by her impatient editor, Jim, to investigate the suicide of a model named Joan Gale. During this time, a hideous monster steals the body of Joan Gale from the morgue. When investigators find that her body has been stolen, they suspect murder. The finger initially points to George Winton, son of a powerful industrialist, but after visiting him in jail, Florence thinks differently.