Kevin and his friends are now in college, and their Professor introduces them to McCreedy, who warns them that it is still possible to be attacked by Hobgoblins.

Despite McCreedy's warning, Kevin and his friends re-encounter the Hobgoblins and must fight against them and their own greatest fears, in order to save their lives.

Made on a minuscule budget,[clarification needed] the film is full of in-jokes and low-budget special effects, just like the original.

", features the original Hobgoblins cast critiquing the new actors who re-created their roles.

Nonetheless, the film does include occasional sly references to the Mystery Science Theater 3000 episode, in which the original film was spoofed (after it was submitted to the MST3K team by Sloane himself) – in particular, the theme song for Hobgoblins 2 is based on a song that Mike and the Bots sing in the MST3K episode.