'Leprechaun 2' starring Warwick Davis as the less than friendly little person continues the franchise with Lep's search for a bride. On his 1,000th birthday, March 17, 1094, Lep is able to pick a bride of his choice, he need only have her sneeze three times without anyone saying "God bless you" to be able to claim his bride. On this particular occasion Lep has made a slave of a member of the O'Day family and informs the man that he intends to set the man free once he has claimed his bride. The man doesn't realize that Lep has chosen his daughter as the bride and at the last minute intervenes by blessing her. Infuriated, Lep tortures the man and tells him that he will marry a descendent of O'Day's in 1,000 years time.
This brings us to current day Los Angeles where Lep has found a 16 year old descendent of the O'Day clan named Bridget Callum. Bridget and her boyfriend Cody have an argument because Cody need to break a date; his Uncle Morty is once again drunk and left Cody to handle the family business of conducting tours of supposedly famous haunted spots in Hollywood.
Into the mix comes a competitor for Bridget's affections, Lyle, to convince her to go out with him; Bridget refuses and shuts the door in his face. The leprechaun, having witnessed the entire scene, creates an illusion to lure Ian to his death in order to eliminate possible opposition.
Cody, seeking Bridget's forgiveness, visits her with flowers as Lep begins making her sneeze. On the third sneeze just as Cody is about to say 'bless you' Lep shuts him up and claims Bridget, but not before dropping one of his gold coins. Cody and Monty search for Bridget while Lep searches for his gold shilling and Bridget searches for her own way to escape.