Archaeologists working in Arizona find a werewolf skeleton. The ill-tempered foreman, Yuri (played by Jorge Rivero) gets into a fight with his crew, Tommy, Joel, and Bill. In the course of the fight, Tommy is scratched by the werewolf skeleton. This greatly alarms his fellow diggers, especially Joel (played by Joe Estevez). The head archaeologist, Noel, details what he knows of werewolf behavior, which he bases on American Indian mythology. Here the werewolf, or yetiglanchi takes on strange behavior including "sleeping nose to anus."
Tommy is taken to the hospital where he begins showing signs of lycanthropy, finally turning into a werewolf and attacking people. Joel and Bill arm themselves with shotguns and silver bullets and succeed in subduing Tommy.
The scene now shifts to a house in suburban Flagstaff. A writer named Paul Niles (Federico Cavalli) arrives. At a party, he is introduced to one of the archaeologists, Natalie Burke (Adrianna Miles) and takes a romantic interest in her. Yuri is jealous and behaves badly - he is expelled from the party by his boss Noel. Yuri, (who is known for his drastically changing hairstyles) walks to the laboratory and conspires to create a new werewolf: he drugs a security guard (played by director Tony Zarindast) and injects him with blood drawn from Tommy. A new werewolf is indeed created, but the werewolf makes the unfortunate choice of driving itself home, and it suddenly crashes into some oil drums (Inexplicably placed in the middle of the road) and dies in the ensuing fire.
The following day, Paul visits the lab at Natalie's invitation. He gets into a fight with Yuri, who attacks him with the werewolf skull. Paul is scratched by the skull, and now it is his turn to start showing symptoms of lycanthropy. He starts attacking people at night, but remembers little of it. Finally, Natalie and Yuri spy him changing. Yuri plots to capture Paul and take him to the lab, Natalie tries to help him. In a murky chase sequence, Paul, in werewolf form, kills Yuri. He and Natalie (now a werewolf, herself, with no explanation as to how she became one although the trailer of the film hints at sex scene not shown in the film) reunite at the end of the movie.