In the small Colorado town of Ovid, the story of Ernie Bishop, the local undertaker, has become a scar on the community, never to be removed. Sixteen years ago, the terrifying legend began, and the town has never recovered. Ernie Bishop stashed teenage prisoners in the basement of his morgue, keeping them tied up in cabinets meant for dead bodies.
He cut, scarred, and tortured his unsuspecting victims and then showed them the damage to their own bodies with a small mirror. One of Bishop's victims, Joan Burrows, sixteen, cut herself free from her bondage and killed Bishop with an embalming fibulator, thus ending this reign of terror and becoming a local hero.
Joan left town after this incident and as the film opens, is returning to Ovid for the first time in 16 years to see her niece, Olympia, be crowned Prom Queen. As she arrives, strange murders take place within this already battered town. Teenagers - specifically Olympia's friends - are being abducted and gory 'clues' are being left behind.
At first, Joan fears that Bishop has come back - and, as a result, worries that she's losing her mind. But when Olympia goes missing, Joan starts to go after the killer on her own. After a few too many coincidences, the cops target Joan as their prime suspect and incarcerate her. Joan is able to break out of jail for one last attempt to save Olympia.