Last year you demanded it. But that was just the beginning

In 2006, a "burglary" occurs at the home of Kristi and Dan Rey (Brian Boland), leaving only their infant son Hunter's bedroom untouched. The only thing stolen is a necklace that Kristi's sister, Katie, had given her. Dan installs security cameras throughout the house. Martine (Vivis Cortez), the family housekeeper and nanny, attempts to cleanse the house of "evil spirits," and Dan fires her after catching her burning sage. Katie and Kristi talk about being tormented by a demon when they were children. Dan's daughter, Ali, begins investigating the mysterious happenings after she is lured outside by loud banging and the door shuts and locks behind her. She discovers that humans can make deals with demons for wealth or power by forfeiting the life of their first-born son. She also realizes that until Hunter, there had not been a male child born in Kristi and Katie's family since the time of their great-great grandmother.

The violence escalates and Kristi is tormented further; the family's dog, Abby, is attacked and apparently suffers a seizure. Dan and Ali take Abby to the vet, leaving Kristi alone with Hunter. When Kristi checks on the baby, the demon assaults her and drags into the basement, where she stays for just over an hour. Finally, the basement door opens and a possessed Kristi walks out.

The following day, Ali is home with Kristi, who will not get out of bed. Ali hears noises and eventually examines the basement door and finds it covered in scratches. She also sees a word, Meus, scratched into it. Ali goes upstairs to check on Hunter, and sees Kristi in his room, with a strange bite mark on her leg. Ali phones Dan, begging him to come home, saying "There's something wrong with Kristi". When he arrives, Ali, who has watched the security tapes from the night before, begs him to view the footage of Kristi's attack. After watching the tape, he immediately calls Martine, who prepares a cross to exorcise the demon; Kristi will have no memory of having been possessed. Dan tells Ali he is going to pass the demon onto Katie so that Kristi and Hunter will be saved. Ali begs him not to because it is unfair to Katie, but Dan sees no other way to save his wife and son.

That night, when Dan tries to use the cross on Kristi, she attacks him and the house lights all go out. Using the handheld camera's [[night vision]], he finds Kristi and Hunter have disappeared. Furniture begins toppling over, and the chandeliers shake. Dan chases Kristi into the basement, where she attacks him. He touches her with the cross, causing her to collapse. The ground rumbles and Dan hears demonic growls and roars, until finally the shaking stops. Dan puts Kristi to bed and burns a photo of a young Katie (the same photo Micah later finds in the attic of his and Katie's house, as depicted in the first film).

Three weeks later, Katie visits and explains that strange things have begun happening at her house. Kristi tells her to not discuss it just as Katie had told her before. She returns home, where she finds Micah has purchased a new video camera; the rest of the scene consists of approximately the first two minutes of the previous film. On October 9, a night after Micah is killed, Katie, possessed and bloodstained, breaks into Dan and Kristi's home and kills Dan by breaking his neck. She then climbs the stairs and attacks and kills Kristi in Hunter's room, hurling her against the camera with superhuman strength and taking the baby. Katie leaves the room, cradling Hunter. The screen fades to black as Hunter's crying dies down and turns into laughter.

A text states that Ali was on a school trip and returned home to find the bodies of Daniel and Kristi Rey on October 12, 2006, and that Katie and Hunter's whereabouts remain unknown.

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