Following the original Sinister, a new family moves into the house unknown of the supernatural entity waiting there for them. As soon as the deputy learns about it, he races against time to prevent the same fate the first family faced.
Sinister 2, instead of using super 8 film the way the first Sinister movie did, uses other found footage mediums such as vinyl records, a ham radio and 16mm film. The film begins with a 16mm home movie of three people tied to crosses in a rural cornfield. One of the crosses suddenly catches fire, killing the person tied down to it.
Deputy So & So from the first Sinister film visits a Catholic confession booth, and it is revealed to the audience that he is no longer a deputy because of his involvement with the Oswalt case. He is now a private investigator, and he spends his free time burning down the houses which he thinks that Bughuul visited. Meanwhile Courtney, a mother of two twin boys (Dylan and Zach), is shopping at the supermarket when suddenly a pervert begins following her, hired by her abusive ex-husband to locate his family. The pervert almost catches her, but she escapes with her sons and he is stopped by a security guard. She drives out to a decaying farmhouse where she and her sons have been in hiding for some time. Dylan has been having nightmares, and to stop them, his not-so-imaginary friend Milo (one of Bughuul’s victims), shows him a number of 16mm snuff reels depicting families being murdered in various ways. One film shows a family eaten by alligators (Fishing Trip), one shows a family frozen to death in the snow (Christmas Morning), one shows a family being electrocuted violently (Kitchen Remodeling) and one shows a family being disemboweled by rats in a church (Sunday School). Zach becomes increasingly violent, calling his mom and brother nasty names, beating up his brother cruelly and displaying behavior akin to his abusive dad.
Deputy comes to the house to burn it down, assuming that it is empty, but he’s stopped by Courtney who threatens him and tries to chase him away. When she realizes that it’s all a big misunderstanding, she invites him in for coffee. He explains that ever since his best friend Ellison Oswalt, was murdered, that he’s been investigating similar cold cases. Courtney allows him to investigate the nearby church, where the rat murder happened, and while investigating, Deputy witnesses a number of odd and frightening paranormal things.
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