Bored in the middle of another summer vacation, Anna, her brother Chuck, and their friends John, Merrie and Marcus plan to meet in the woods at midnight every Saturday to tell scary stories. They call their group The Nightmare Club and they get together to see who tells the scariest stories throughout summer and into the fall when they head back to school. The group becomes inseparable, looking forward to the meetings every week as they try to outdo each other. But, their late-night fun turns to terror when they learn an other-worldy being-known to them as Mr. Nightmare-has taken an interest in them and has been feeding on their dreams. Mr. Nightmare continues to taunt and torment the group until they decide to fight back against their tormentor. The more The Nightmare Club fights back however, the more dangerous Mr. Nightmare becomes.