Teenagers Nancy, Quentin, Kris, Jesse and Dean are all neighborhood friends who begin having the same dream of a horribly disfigured man who wears a tattered sweater and a glove made of knives. The man, Freddy Krueger (Jackie Earle Haley), terrorizes them in their dreams, and the only escape is to wake up. But when one of their number dies violently, the friends realize that what happens in the dream world is real, and the only way to stay alive is to stay awake.
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