One night upon wandering the dream world, Luna encounter something horrific: a young mare being brutally murdered by a mysterious demonic being. She brushes it off as just a nightmare the mare had only to discover the exact mare she saw get murdered had actually died. She and many others soon discover the killers identity: Freddy Krueger. Now the mane six, the other princesses and a few others must track down and destroy the dream demon. All while one by one more ponies die.