With nothing but revenge on his mind, Toulon, using the method of reanimation, takes brain matter from Elsa and uses it to bring to life his first living puppet, Leech Woman.

Leech Woman kills the boy from the Hitler Youth that ratted Toulon out, and his brain matter is used to give her a brother, Blade.

Blade and Leech Woman sneak into General Muller's car, and brutally kill him, his mistress, and the driver; all brain matter is used to give life to Pinhead and Tunneler.

Three weeks after Toulon's death, Paul decides to let tourists sleep in his room again, and it's booked by horror movie actor, Chuck Dalton.

Two weeks later, Herr Kron, chairman of Krapps Shipping (and a German-American who is aiding Fritz in his mission), demands to know what happened to Helga and Hans.

After telling him everything that happened, Fritz explains that, through the Egyptian papyrus, journals and notes hidden in Elsa's grave, he was able to link Toulon's discovery of reanimation back to Cairo, Egypt.

Back in November 19, 1919, Andre bought the Egyptian papyrus for sustaining eternal life from a Cairo Merchant named Ahmed El Eskander, and the secret resides in the temple of Anubis.

That night, Eskander is brutally killed by the puppets, who have traveled there with Paul on a mission by Andre to protect the temple's secret.

That night Fritz returns to the Bodega Bay Inn, where Paul and Susan, now working as a maid, are being questioned by reporter Lee Maxwell about the disappearances of Betty, Helga, Chuck and Hans.

André dies once again, and is put back into the ground by Paul and Susan, now raising the puppets as their own children, finally coming into terms of appreciating them, just like Andre’ did.

With the release of Puppet Master: Axis of Evil, the characters of Paul Toulon, Fritz Loemann and Hans Faulhaber are considered non-canon.