Stepfather II received a limited theatrical release on November 3, 1989, and grossed $1.5 million at the box office.

After surviving being shot and stabbed at the end of the previous film, Jerry Blake is institutionalized in Puget Sound, Washington.

Blake checks into a hotel, alters his appearance, assumes the identity of deceased publisher Gene F. Clifford, and travels to Palm Meadows, Los Angeles.

In Palm Meadows, Gene poses as a psychiatrist and soon meets Carol Grayland and leases a house across the street from her and her 13-year-old son Todd.

During a session with the neighborhood wives, Gene learns that Carol's husband Phil left his family the previous year.

Gene begins courting Carol, eventually winning over her and Todd, but Phil returns, wanting to reconcile with his wife.

In the extended version, after Carol and Todd are sent to recoveries, the scene shows that they are finally living happier and confident without Gene as they enjoy playing together in the park.

After a test screening of the film, studio executives Harvey and Bob Weinstein complained about the lack of blood and demanded re-shoots.

[7] Variety stated "this dull sequel reduces the intriguing premise of the original Stepfather to the level of an inconsequential, tongue-in-cheek slasher film".