When a family moves into a San Francisco apartment, an opportunistic troll decides to make his move and take possession of little Wendy, thereby paving the way for new troll recruits, the first in his army that will take eventual control of the planet. We soon discover Torok is the ex-husband of Eunice St. Clair, a resident in the building who was married to Torok.

When young Joshua learns that he will be going on vacation with his family to a small town called Nilbog, he protests adamantly. He is warned by the spirit of his deceased grandfather that goblins populate the town. His parents, Michael and Diana, dismiss his apprehensions, but soon learn to appreciate their son's warnings. Guided by his grandfather's ghost, will Joshua and his family stand a chance in fighting off these evil beings?