Julio (Pedro Fernández) owns an antique shop and is currently trying to make a lucrative deal with a supplier over the telephone, but there's a mix up when a customer, Mayra (Tatiana), asks the price of one of his objets d'art and he ends up getting a lesser amount of money than he would have wished. He doesn't mind too much when he recognises Mayra from the television and magazines, for she is a singer whose first single is released this week, and flattered she invites him along to a birthday party at her father's movie studio...
But you'll have noticed the word "terror" in the title, so all is not going to go well, and it's all down to that darned doll from the first Vacation of Terror, or Vacaciones de terror of you were Mexican. With Julio the only character returning from that instalment, complete with mighty mullet, he is the one who twigs to the danger that the doll can bring. It is now owned by Mayra's little sister Tania (Renata del Río), and when Julio catches sight of it as Marya drives away, he knows he cannot turn down this invitation. As well as because there's a madman smashing up his shop by way of warning him about the toy.
Always a strong hint, that. Anyway, holidays are thin on the ground here as perhaps Party of Terror would have been a better name for this, but once Julio arrives at that event, it plays out much as the first film did. But not before we get to hear Marya sing her new single for the assembled throng, which sounds like a Stock Aitken and Waterman effort - actually it bears uncanny resemblance to "Cross My Broken Heart" by eighties pop sensation Sinitta; it's no surprise to learn that Tatiana is indeed a pop star in her home country, but curious that she should star in a horror film when she sells mainly to children.
The party is going with a swing until the cake is brought out and the doll hides under it, as this is quite some cake and has been decorated to look like an enchanted area of woodland, with haunted cottage and a waterfall (wouldn't that make it soggy?). However, Tania cuts her finger when slicing the cake, and this is the cue for the doll to transform through the wonders of special effects into a pointy-faced demon. For this incarnation of evil to wreak havoc on the entire guest list would have presumably cost more than the budget could handle, alas, so a compromise is swiftly reached.
This involves everybody going home and later that night Mayra has to take her sister back there, with Julio in tow, to look for the pricey coins she got for her birthday and accidentally left behind there. Now the special effects department can go to town with extensive rubber constructions, as the three hapless intruders are terrorised by the demon and prevented from leaving when Tania is spirited away, Poltergeist-style, into another dimension. To complicate matters, her pistol-packing father shows up and is immediately drawn into this situation, although none of the main characters should really be worried as it is security guards who are the chief victims. All amusing enough, but the demon's actions seem way out of proportion for such a set up, and you can feel he's overreacting if you could work out what it is he's actually trying to achieve. Music by Pedro Plascencia.