The last of the Elm Street Children are in a mental institution because of the recurring dreams they're having about Freddy Krueger. Nancy returns as their counseler (and does an excellent job). When one of the kids leaps off the psychiatric ward building, Nancy decides its time to remember her past and kill Freddy off once and for all....until the next sequel.
From the rather disappointing Nightmare on Elm Street 2: Freddy's Revenge, Freddy certainly bounces back strong with a vengence. And what a prefect setting for hellish dreams to occur. This is the movie where we start seing the interesting deaths such as hte wannabe television Star getting her head thrusted threw a tv set (with Freddy's very famous line "Welcome to Prime Time, bitch!"). Also (and for those of you who don't want a spoiler, look away now)...rather surprisingly, Nancy meets her ironic demise. This was an excellent choice by the writers because it was rather unexpected. A diabolical movie for you Freddy lovers.