- Directors: Wes Craven
- Producers: Robert Shaye
- Writers: Wes Craven
- Genres: Horror, Mystery, Thriller
- Actors: John Saxon, Ronee Blakley, Heather Langenkamp, Amanda Wyss, Nick Corri, Johnny Depp, Robert Englund
Teenager Tina Gray (Amanda Wyss) has a disturbing nightmare in which she is stalked through a dark boiler room by a figure with distinctive razor-sharp knives attached to the fingers on his right hand. Just as he catches her, however, she wakes up screaming, only to discover four razor cuts in her nightdress identical to the cuts in her dream.
The next day, she finds out that her friend Nancy Thompson (Heather Langenkamp) experienced a similar dream. That night, Tina, Nancy and her boyfriend Glen Lantz (Johnny Depp) have a sleep-over to make the distraught Tina feel better. Tina’s rebellious boyfriend, Rod Lane (Nick Corri), crashes the party and goes to bed with Tina in her mother’s bedroom. However, Tina has another nightmare, and this time the killer catches her and murders her brutally. Rod wakes up to find Tina being cut open by invisible knives and then dragged up the wall and across the ceiling. Rod, being the only other person in the room at the time, flees the house and is caught the next day.
Nancy then has three violent nightmares in which she is viciously stalked, then attacked, by the same terrifying figure who attacked Tina. These nightmares cause her to talk to Rod in jail, who tells her what he saw in Tina’s mother’s bedroom. Much to the dismay of her mother Marge (Ronee Blakley), Nancy becomes increasingly convinced that the figure appearing in her dreams is the person who killed Tina. Nancy and a skeptical Glen rush to the police station late at night to talk to Rod, only to find that he’s been strangled by his own bedsheets. To everyone except Nancy, it appears to be a suicide.
The scene changes to the next morning as Nancy gets in a car with Glen and the rest of her friends, on their way to school. Krueger possesses the car just as she gets in. The car drives away with Nancy screaming for her mother, and Marge being pulled through the door window by Krueger’s bladed hand.