Immediately after his apparent demise at the end of the previous film, a new Tall Man emerges from his dimension fork.

Two years later, a comatose and hospitalized Mike has a near death experience, where his deceased brother Jody appears, but is interrupted by the Tall Man.

Reggie arrives as she dies, her scalp bursting open, revealing a cranial sphere that takes off through the window after seeing Mike awake.

When they make camp at night, Jody approaches Reggie in a dream, taking him to the Tall Man's lair, where they rescue Mike.

After fighting off the Tall Man's minions, including the undead looters, they enter a large mausoleum in the city of Boulton.

While Reggie, Rocky, and Tim are separated and attacked by the undead looters, Mike consults with the Jody-sphere in a psychic link.

According to Reggie Bannister, Universal Studios refused to theatrically distribute the film in a proper release due to a conflict with Coscarelli.

In 1996, the Los Angeles Times reported that Phantasm III was one of the top 100 highest selling direct-to-video titles.

[4] An unrated version of the film was released in 2007 by Anchor Bay Entertainment, featuring an audio commentary by A. Michael Baldwin and Angus Scrimm, a deleted scene, and behind-the-scenes footage.

[5] Rotten Tomatoes reports that Phantasm III received a positive review from 40% of ten surveyed critics, and the average rating was 4.57/10.