Psycho Ward is a horror film. It tells the story of a group of friends who are all involved in urban exploring. Urban exploring is when people break into abandoned buildings and take pictures and explore. One day, a particular group of friends decide to break into an old mental hospital, they are led by a Doctor who used to work at the hospital and believes that the U.S. government is using the place to do secret experiments. The hospital has been closed for years and the friends think this will be just be an exciting afternoon checking things out. Unfortunately, they soon discover creepy and terrifying things occurring at the hospital.
The friends become trapped in the hospital and they are unable to find a way out. As they walk all around the hospital, different members of the group begin to disappear one by one. It turns out that a killer is loose in the mental ward and he is picking off the explorers one by one. He chases one girl down a narrow hallway and corners her in a small room. The girl manages to escape by lying one a shelf out of the killer's view.
There are even conflicts between the various members of the group. One guy is injured by the killer and the group of girls with him run away in fear rather than help him. Later, they return to try and give aid but the injured guy is furious. As they are assisting him, he sees the killer return and fails to warn them. The group also thinks that one of the girls is working with the killer. They decide to tie her up so she cannot hurt them. Unfortunately for her, the group is wrong and the killer ends up finishing her off.