Three months later, Dalton, still trapped in the coma, is moved back home. Disturbing supernatural events begin to occur, as Dalton's younger brother Foster claims that he doesn't like it when Dalton "walks around at night". After being attacked by a spectral figure one night, Renai convinces a skeptical Josh that the family should move, as she believes their house is haunted.
In the new house, the supernatural events resume, with Renai encountering the ghost of a little boy that runs around the home laughing. Josh's mother, Lorraine, visits one day and claims that she had a dream about a shadowy figure in Dalton's room and when asked what it wanted it responded "Dalton". Suddenly, Lorraine sees a monstrous, red-faced figure behind Josh and loud banging noises are heard as Dalton's bedroom is then ransacked by supernatural forces. Lorraine contacts a friend, Elise Reiner, who specializes in the investigation of paranormal activity. Elise enters Dalton's room and sees something on the ceiling, to which her assistant Specs draws a dark, demonic figure with a red face and hollow eyes; the same figure from Lorraine's dream and seen behind Josh.
Elise sits with the family and explains that Dalton isn't in a coma, but that he has the ability of astral projection. His spiritual body has become trapped in "The Further"—a place where tormented souls of the dead are condemned into eternal darkness. While Dalton's spirit is in this other world, his physical body is left as an empty vessel. The tormented souls in The Further and the demonic figure are all attempting to take over Dalton's lifeless body.
They run a session to try to communicate with Dalton, which results with the family and Elise's team being attacked by spirits and the demon. Elise and Lorraine reveal that Josh also holds the ability to astral project; As a child, he was terrorized by the parasitic spirit of an old woman who wanted to possess his body. This old woman would appear in every photo taken of Josh as a child, leading to his disdain for having his picture taken. Elise had helped Josh forget about his ability to astral project, but now suggests that Josh use his ability to find and return Dalton's soul. She places Josh in a trance, and he is able to project his spirit body into the shadowy world of The Further. After encountering various spirits, Josh enters the demon's lair and discovers Dalton chained to the floor.
He sets Dalton free, but the two are discovered and attacked by the demon. In the real world, the spirits of The Further begin to cross over, seeking to take hold of Dalton and Josh's bodies. Josh leaves his son to confront the spirit of the old woman, while Dalton flees from the demon. Moments later, Josh and Dalton both awaken in the real world, and all of the spirits vanish. The family is now happily reunited; however, Elise senses something sinister and takes a picture of Josh. He promptly goes into a barbaric rage and strangles Elise to death. Renai comes in to find Elise dead and Josh gone. She checks Elise's camera and sees a picture of the old woman in Josh's place, implying that she has possessed Josh's body. Suddenly, Josh's hand touches Renai's shoulder and implies "I'm right here" and as Renai turns around she gasps in horror as the screen blackens.
In a post-credits scene, the old woman (who possessed Josh) is seen blowing out a candle, plunging the screen into total darkness.
Twenty-five years later, Josh's wife Renai is under questioning by a police detective about the death of Elise. Unsettled, Renai rejoins her family as they relocate to Lorraine's house, where Renai witnesses strange occurrences. She suspects that Josh is inhabited by the old woman. The next day, Renai sees a woman wearing a white dress sitting in the living room. Following the cries of her baby throughout the house, Renai faces a woman in white and is knocked unconscious. Lorraine visits Elise's colleagues, Specs and Tucker, to seek an explanation behind the strange events. They call Carl, who attempts to contact Elise using word-dice. Through the dice, they are told to find answers at the "Our Lady of Angels" hospital. Led to the ICU, Lorraine recounts a story of a patient named Parker Crane, who committed suicide many years ago. In Parker's home, they find a secret room with 15 corpses in it. They also find a black wedding gown and veil as well as newspaper clippings about a killer referred to as "The Bride in Black," who kidnapped and murdered several people while dressed as a woman. It is then revealed that it was not Elise speaking through the dice, but actually Parker's mother.
After Renai recovers, Lorraine insists that she, Renai, and the kids get away from Josh. Carl arrives to drug Josh, who is possessed by Parker, while Specs and Tucker monitor from outside. Josh incapacitates Carl, Specs, and Tucker and ambushes Lorraine and Renai when they return to the house. He attempts to choke Renai but is knocked over the head by Dalton. Renai and the children escape to the basement. Dalton falls asleep and returns to The Further to rescue his father.
In The Further, the real Josh, Carl and Elise proceed to Parker's house, where they witness his mother, the woman in white, abusing him as a child, attempting to convince him that his name is Marilyn. Josh finds the room filled with standing bodies—assumed to be Parker's victims. Upon finding Parker's mother, the two engage in a fight. Just as Parker is about to kill Dalton's physical body and Parker's mother is about to kill Josh, Elise saves Josh. After the three escape, they meet Dalton, who assists Carl and Josh to return to the living world. Josh and Dalton wake up as themselves, and their memories of their astral projection abilities are forgotten through a process of hypnosis.
Specs and Tucker proceed to go to a family whose daughter, Allison, is in an unexplained coma. Unbeknownst to them, Elise enters the home and approaches Allison. She senses a demonic presence behind the girl and exclaims "Oh my God" while she looks on in horror as the screen cuts to the title.
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