The Grudge 2 focuses on the house of the Saeki family which is under a curse. Takeo Saeki murdered both his wife and son as well as the family cat and as a result was forced to hang himself by his wife's Onryo. An onryo is the Japanese version of a vengeful spirit. In the first movie a caretaker named Karen attempts to burn the house to get rid of the vengeful spirit and ends up in the hospital. Her sister is sent to bring her home but she has a hard time trying to communicate with the hospital staff. When her and her translator step outside to speak about the house and the fire, Karen escapes her restraints and flees to the roof being pursued by Kayako Saeki's spirit who then pushes her off the roof. She falls to her death right in front of her sister and the reporter.
The reporter explains to Aubrey (Karen's sister) about the curse of the house. They are so intrigued by the story that they venture to the Saeki House. He enters the home to take some pictures and to get Kayako's diary. Aubrey decides to stay outside but is lured in by Kayako's son Toshio. They leave to get the pictures developed and to encounter Kayako's mother for answers.
While staying at the reporter's apartment he is killed in the room where his photos are developed by Kayako's spirit. Aubrey finds his body and sees that every photo has Kayako's face in it and feels in fear. She finds her way to Kayako's mother who informs her that the curse is irreversible. It is then found out that Aubrey had brought Kayako's spirit with her. The old woman tries to kill her but Kayako breaks her neck.
Aubrey returns to the cursed house to find out what the motive behind the curse was. She screams out her questions and then is forced to relive Kayako's last moments alive and die as she did.
Aubrey now is the new onryo and her spirit travels back to the U.S. with a teenerager. More family's die because of the curse.