This sequel to Mr. Boogedy picks up some time after the event of the first film. The Davis family has moved on from its horrifying start to embrace their new life in their New England community. As the town prepares for a local festival, Carleton Davis (Richard Masur) is asked to be guest of honor. However, his rival in the novelty business, Tom Lynch (Eugene Levy), is jealous and highly upset by this news. As Tom tries to sabotage the upcoming festivities, Carleton’s two sons accidentally unleash Mr. Boogedy into the small town again. Mr. Boogedy soon takes Carleton’s wife for himself, forcing the remaining Davis family members to band together to send him back to where he belongs. In their journey to send Mr. Boogedy back to where he came from, Tom finds Mr. Boogedy’s magical coat and tries to use it for his own fiendish plans.

The story follows the Davis family as they move to a small New England town. They just purchased an old home that the locals claim is haunted. Soon after moving in, the children hear stories from the locals on why their new home is haunted. Back when the town was founded an older pilgrim nicknamed Mr. Boogedy lived there. He hated children and would often scare them by screaming, “boogedy boogedy boo.” Mr. Boogedy may have hated children but was in love with a widow in town. In his pursuit of the woman, he becomes evil and cursed, or so the story goes... The kids do not believe the urban legend and return home only to be haunted by Mr. Boogedy, as he tries to scare them from his home.

Two little league teams take on their coaches’ sibling rivalry, and end up doing battle in a place the baseball world never expected it: the outfield of the Home Run Derby.