- Directors: Toby Wilkins
- Producers: Takashi Shimizu, Sam Raimi
- Writers: Brad Keene
- Genres: Horror, Thriller
- Actors: Johanna Braddy, Shawnee Smith, Emi Ikahata, Beau Mirchoff, Gil McKinney, Matthew Knight, Jadie Hobson
The events of The Grudge 3 occur several months after the Chicago vignette of The Grudge 2. Jake Kimble, (Matthew Knight) the sole survivor, is now institutionalized after the gruesome murder of his family. His caretaker is Dr. Sullivan, who is skeptical of Jake’s stories describing a woman with long black hair covered in blood as the murderer. Dr. Sullivan has to leave Jake in his room as she has to take care of the other patients. She reassures Jake by telling him that there is a security camera that will always be watching him. When she leaves, almost immediately the lights start flickering, and Jake realizes that Kayako is here. He screams for help, but the security guard does not pay attention, but it is too late when he does realize what happens, as he sees Jake being flung around the room by an invisible force. When they arrive in the room, Jake is lying in a pool of blood. He has broken almost every bone in his body. Dr. Sullivan has become aware of the truth.
Kayako’s sister, Naoko Kawamata,is a young Japanese woman who hears of Jake’s death through the newspaper and becomes worried. Naoko knows how to stop the grudge and travels to America, more specifically to Chicago where the last incident linked with Kayako occurred. She is introduced to the Chicago apartment by Max, (Gil MicKenny) the landlord, and immediately begins to feel her sister’s presence. She meets Max’s little sister, Rose, and she somehow knows that Rose is in touch with the dead and can communicate with Toshio, Naoko’s nephew. She also meets Lisa (Johanna Braddy) and they quickly become friends, and they meet other residents of the apartment, including Gretchen, (Marina Sirtis) who is an artist. Lisa begins to grow frightened when she realizes her younger sister Rose is seeing a dead boy all around the apartment.
The final scene is of police and doctors removing the bodies and Lisa telling Rose that everything will be alright. However, as she hugs her, the final image is that of Kayako filled with rage and hugging Lisa instead of Rose.