An ambulance arrives at the home of Roger and Patti Hayes, who had found their daughter Allison near death in her bed, slashed and bruised with no hints of who attacked her.

Dr. Juliann Quinn is preparing to leave New York City and her boyfriend Doug behind for her hometown of Springwood in Ohio, where she has a job offer at the Westin Hills Psychiatric Hospital waiting for her.

In the Springwood Medical Center, Freddy attacks Allison once again while she's in surgery, but she starts to fight back on her nemesis, leading the doctors to conclude that her body tried to die, but her mind would not allow it.

After meeting with Dr. Marlin, he makes it clear to Juliann that Allison will not be allowed to take Hypnocil once she's transferred to the Westin Hills Psychiatric Hospital, due to the scandal that happened there three years ago.

At home, Juliann goes to take a shower before sleep, but she had in fact already fallen asleep and is surprised to find herself in the Oval Office, where Freddy is sitting in the president's chair.

Rich Buckler illustrated the first 23 pages of the first issue but left due to - as Gerber speculated - "editorial conflict or financial problems", and was replaced by Tony DeZuniga for the remainder of Dreamstalkers.

According to Gerber, he had created an antagonist to Freddy who would return as a recurring character; since Dr. Juliann Quinn was killed off, this would mean Allison Hayes, who was left at a cliffhanger ending.

[19][20] Webber also mentions a September 1989 call for boycott by the American Family Association, condemning a Freddy merchandise doll as a "product of a sick mind", as another possible reason.

He also calls Juliann Quill's death underwhelming, given how important she had been to the story up until then, speculating that it might have been a change of plans due to the artists finding out they were getting cancelled, but otherwise feels that the cliffhanger ending was as good as it could have given the circumstances.

[24] The reviewer considers the second issue to be slightly weaker, but calling the artwork still very solid and the story making the reader feel for Allison's fate in the cliffhanger ending.

It almost spells it out that Freddy is what would’ve happened if Rorschach’s experiences led to him becoming the dog-owning child-killer that drove him off the deep end instead of a crazed vigilante”.

They state that the backstory on Amanda Krueger is more detailed than anywhere else in the franchise, such as A Nightmare on Elm Street 5: The Dream Child (1989), and is portrayed in a much more disturbing fashion, arguing that her compassion becomes her undoing.