Welcome to Springwood, which is your typical American town. Except for the fact that a select group of teens are dying in their sleep. Springwood is the setting of the remake of 1984 original and teens Nancy, Quentin, Kris, Jessie and Dean are having serious sleep issues. The group begins to have dreams about a mystery man who seems intent on doing them harm. Severely burned, donning a red and green sweater and brown hat, he torments the teens in their dreams with a homemade glove that has knives for fingers. All involved start to remember blurry fragments of their distant childhood, mainly surrounding a place called Badham Pre-School. The group questions their parents, who offer up no help at all but seem to be hiding a huge secret. A traumatized Kris begins to dream of herself as a child and finds a horribly cut up toddler dress, which appears to have been butchered by the man of her bad dreams.
The kids' fight to stay awake becomes a fight for their lives. As the teens become prey to horrific nightmare man, Nancy and Quentin attempt to discover their link to each other and to their badly burned assailant. In order to stay awake, they utilize Quentin's ADD medication and copious amounts of caffeine. As these efforts begin to fail, Nancy and Quentin experience deadly micro-naps. In this half awake, half asleep state, they are easy targets for their unknown attacker.
The story unfolds and the identity of the dream stalker is unveiled, along with the history of the tormented teens. Nancy's mom Gwen, played by Connie Britton, reluctantly fills in some of the gaps from the teens' missing memories of their childhood at Badham Pre-School. Freddy Krueger, a former gardener at the now closed preschool, is back from the dead. Krueger is seeking revenge on the children who accused him of abuse several years prior. In retribution, the teens' parents burned him to death in an abandoned warehouse.
Nancy attempts to track down various members from her pre-school class, only to find that many of them are already dead, with their deaths being ruled as tragic accidents or suicides. Without the aid of the police or their parents, this group is on their own to stop Freddy. Who will survive and will they ever get a peaceful night of sleep ever again? Former child star Jack Earle Hailey stars as the scarred villain in this 2010 remake.