The Lambert family begins life anew only to find out that the evil spirit tormenting them has followed them in their new home. Josh and his family just survived the haunting in their last house, which left his clairvoyant friend Elise dead. They move in at Josh's childhood home, where his mom Lorraine lives. Soon after, strange things start happening again much to Renai's (Josh's wife) terror. Renai sees a woman in white who violently slaps her and takes their baby daughter. She also keeps hearing the piano playing, while no one is there. Their son, Dalton who has a third eye, sees his dad Josh talking to thin air one night and tells his mom about it.
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Lorraine, who has also seen the woman in white gets the help of Elise's two assistants, Specks and Tucker. The assistants call on Carl, a medium, and also a good friend of Elise's to contact Elise's spirit. At a seance, they make contact with Elise and ask her who her murderer was, she simply answers that a "woman" did it. The group is also left the name of a hospital, and Lorraine identifies it as the place where she worked and the place that probably started all the supernatural phenomena that both she and Josh experienced years ago.
Meanwhile, we discover that Josh isn't really Josh. His spirit is trapped in the other world. Whereas Lorraine and the spiritists accompany her to the hospital. She is reacquainted with the story of an old patient Parker, who turns out was a cross-dressing serial killer who killed many women. His mother was incredibly against his sexual leanings and was cruel to him. She is the woman in white.
They now believe that it is Parker taking over Josh's body. They plan on sedating him but they fail, killing Carl in the process and knocking out Specks and Tucker. In the other world, Josh, Carl, and Elise band together to stop Parker. Elise is able to kill Parker's crazy mother by beating her with a rocking horse. Meanwhile in the real world, Parker, as Josh runs after Renai, and their two sons wanting to kill them. While hiding, Dalton astral projects to the other world, to try and look for his dad. They all find their way to each other and try to come back to the real world. Elise is left behind but goes to "heaven." Carl, who isn't completely dead returns to the land of the living along with Josh, and Dalton. Everything is as it should be.
Later, Specks and Tucker pay a visit to the only survivor of the serial killer's victims. She is haunted by a malevolent spirit as well, leading us to believe that this story isn't over yet.
Best part of story, including ending:
It picks up right after the first movie, and we get a clearer account of Josh's background and explains to us Josh's supernatural leanings.
Best scene in story:
When physical Josh sees the "spirit" Josh playing the piano and tells him to basically rot in limbo.
Opinion about the main character:
Josh wants to save his family from this unwanted "ability" of his that always gets everybody into trouble.