They say it is one of the most haunted houses in all of Japan......

          Yeah, and that anyone who enters gets the curse.

The second installment finds Karen in a hospital after attempting to burn down the house following the death of her boyfriend.

Aubrey Davis learns from her ill mother that her sister Karen has been in an accident in Japan. Despite a strained relationship, Aubrey flies to Tokyo to help her sister, where she meets a reporter named Eason. He accompanies her to Karen's hospital room, and Karen begs her sister to help her leave and to stay away from the Saeki house. Outside the room, Eason tells Aubrey that he saved Karen from the burning house and that he wants to write a story about her. Meanwhile, Kayako appears to Karen, who escapes her room and flees to the hospital roof. Karen thinks she is safe, but Kayako's hand pulls Karen off the roof......her body lands in front of her sister...

Aubrey sleeps at her sister's old apartment....and it isn't long before she and the reporter go to the Saeki house and discover Kayako's diary. The couple then go to Eason's friends home, who is an expert in Japanese folklore, and they decide to find Kayako's mother. However poor old Eason meets his maker, or rather kayako, and Aubrey is on her own!! Despite this minor setback she continues to search from Kayako's mother....not a very good decision methinks. Instead of finding the mother she meets Takeo......and he deals wit her in the same way as he did Kayako.....

Allison is a new student at the international high school in Tokyo, and there she meets students Vanessa and Miyuki. They take her to the Saeki house in order to play a prank on her. The girls convince Allison to enter the closet Kayako's body was stored in, and force the door closed. After Allison screams, the other girls leave, but she is unable to exit the closet until she sees Toshio and what appears to be Kayako. After they return to school, all three girls deal with haunting's from Toshio, the cat, and Kayako. Of course it isn't long before one of the girls die....and then two......and then......

In Chicago meanwhile, Trish has recently married Bill, and is moving into the apartment he shares with his daughter Lacey and son Jake. There are of course issues with the family, and things don't look too healthy when Jake starts seeing ghostly apparitions of Miyuki and Vanessa...and things get worse when Trish kills her husband - and when Lacey and Jake return home they discover there fathers body....a dead Trish....and shortly after poor Lacey also dies.

Jake flees his apartment as he hears screams from the Fleming's apartment. The girl in the sweatshirt turns out to be Allison, from the school in Tokyo, and through a series of flashbacks, we learn that the ghost she saw in the haunted house was actually the spirit of Aubrey Davis. Jake accuses her of bringing something back with her, and she confirms that Kayako's spirit has been freed from her home and is with them in Chicago. So what do the pair do....they are in a hopeless situation and surely have no escape?????

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