After much effort, an archaeologist opens up the door to an enshrined tomb, and a pink-coloured demon leaves the pyramid, hiding in a weird-looking house in the middle of the night.Cut to the Wades, who have just arrived from the USA to Mexico so that the father Elliot Wade (Sam Bottoms) can start a doll factory. There are many dolls left around, and the youngest child, Jessica "Jessie" Wade (Candace Hutson) choose one. She goes to play to the weird-looking house, that now we realise it is a doll house out in the open. Jimmy Wade (Chris Demetral), the oldest son, explores the estate, and finds an entrance-forbidden plot in which there are some Aztec ruins. The mother, Marilyn Wade (Denise Crosby), doesn't exactly like it there in Mexico. She's always sweating and feels that the children do not pay attention or obey her. She is a housewife, helped by Camilla (Lupe Ontiveros), who talks endlessly about her relatives: her uncle who has sold the household the vegetables and uses goat shit as manure and about her sister, who has become a nun and is the pride of the family.Marilyn is more and more worried because of Jessie's obsession with Dolly. The girl says that Dolly is her only playmate, and is very kind with her mother when she asks her not to interfere with them. Dolly usually spends the night sitting on a rocking chair at Jessie's bedroom. Camilla brings a priest to bless the house, but that makes Jessie freak out. That night, Dolly leaves Jessie's room to walk around the house. Jessie realises that and goes after Dolly. Camilla notices Jessie walking around in the night. Camilla follows Jessie, who's following Dolly into the doll house outside. Camilla stops Jessie, but the door slams shut in the middle of the night. It's windy and a storm is about to break. Elliot is out, presumably leaving in his car for some work-related matter, Marilyn is nowhere to be seen and Jimmy is listening to music in his headphones, so nobody listens to Camilla trying to find a way in. As every door is locked, she decides to try the basement's door while Jessie waits outside, sitting on a step to the main door. Dolly follows Camilla, laughing a weird laughter, and stabs her. Camilla panics and tries to defend herself, but Dolly pushes her onto an inner washing well, or something, and then kills it by electricity. The fuse blow out, which finally wakes Marilyn up. When Elliot arrives, Marilyn is nervous about the darkness, and fumbles with the matches and candles. Elliot finally finds Camilla's body, who seems to jump at him.Marilyn becomes more and more anxious about the doll, and tries to separate them. She tells Jessie not to hide from her and not to close the doll house behind them, but - pushed by Dolly -, Jessie suddenly becomes complacent and a soft-spoken child, only to close the door on her mother's face. Marilyn will also try to forbid the child to sleep with Dolly in her bed, but Jessie refuses.Meanwhile, the work in the factory has continued. The factory is close to the house, in the same state. One of the workers, Héctor (Jaime Gómez) has been killed by the rest of the demon-possessed dolls. All the doors are supposedly similar, but they all look different somehow.Jimmy talks to Karl Resnick (Rip Torn), who has found him trespassing into the Aztec tomb. At frist, Karl tells Jimmy off, but later, he can't get into the closed quarters where the actual stone coffin is, as there is a very narrow open space leading to it so it is sort of implied that he has finally asked Jimmy for help. Jimmy enters, and finally, Karl discovers the corpse of a demon. Marilyn tries to find an explanation and instructions in the nun (René Víctor) who was a relative of late Camilla, but the nun tells her that they have released a demon which uses children to do wicked things, and that there is no solution. At this point all hell breaks lose. All the dolls at the toy factory become alive and they attack Luis (Will Gotay) and Estrella (Enrique Renaldo), the other worker, and Elliot. Elliot becomes caught with a rope hanging on top of a huge electric saw. His worker defends Elliott, who then releases himself. Meanwhile, Dolly has become alive while Jessie has become catatonic. Dolly tells Marilyn that there is not turning back and attacks her. Marilyn uses a shotgun to kill Dolly. She also tells Jimmy to phone Elliott, but he doesn't answer. Marilyn tells Jimmy to stay downstairs. She shoots Dolly. Marilyn, Jimmy and a now present and awaken Jessie run out of the house. Karl and Elliot use dynamite to blow all the dolls to pieces. It seems that the plot is working. It looks that they have killed all the dolls, in the process blowing up the house and the factory.