At the Bodega Bay Inn in Bodega Bay, California, rogue agent Maclain reads André Toulon's diary, hoping to find some secret to the formula but the diary bursts into flames. She travels down to the basement, finding a man, Eric Weiss, talking to the last Toulon puppets: Blade, Pinhead, Jester, Tunneler and Six-Shooter. Weiss explains that he knew Toulon before he died, and that he swore he wouldn't pass it to anyone else. When Maclain threatens him with a gun, Weiss takes out a tape recorder, and plays a recording that Toulon left him, detailing how Toulon came to possess the magic.
After the recording finished, Maclain tells Eric that she knows everything about Rick Myers, because before she came to the hotel, she went to collect Toulon's diary. Myers refused to cooperate, so she killed him and took the diary. Seeing one final recording, Maclain threatens him to play it. The recording talks about how there's always someone discovering Toulon's secret, even after his supposed death, always someone who didn't fully understand what a gift, or a "curse", the formula for the puppets really was. After the recording, Pinhead incapacitates Maclain, and Eric fatally shoots her with her gun. Minutes away from death, Maclain explains that's not what she wants, and she tells Weiss that when the puppets brought Toulon back to life, he resumed his final experiment, the one he started before he committed suicide: soul transference.
Maclain reveals that her true intention is to know what makes the puppets die once and for all. She explains that Toulon and all the subsequent Puppet Masters created immortals, souls trapped in wooden bodies, living every day in agony, wanting revenge on their Master, whose title now belongs to Weiss. Maclain dies. Weiss hears something and moves to see the immortals the Masters have created (off-screen). In the final shot, Weiss turns the gun on them and fires.
The film ends with a note: "The producers would like to thank all the cast and crew who have helped make the Puppet Master series a tremendous success over the years."
Cast
Kate Orsini as Maclain
Jacob Witkin as Eric Weiss / Peter Hertz ;Archive footage