In an opening distainer, when Sally Hardesty-Enright (the survivor from the original) escaped from the cannibal family, she reported it to the authorities. Since she was so terrorized and terrified over what happened, she fell into a catatonic state of mental health. As for the authorities, they issued a month-long manhunt for these wanted criminals, but when they arrived at the house, absolutly nothing was found. No suspects were taken into custody, no evidence was obtained. Nothing was found and on the records, it was concluded that the massacre Sally described did not happen.
13 years after 1973, after authorities came to the conclusion that there was no massacre in Muerto County, Texas, more brutal chainsaw murders occurred after remaining silent after over a decade of absence. Not only were the massacres of 1986 located in Austin like in 1973, but the "Texas Chainsaw Massacre" state-wide killing spree. It wasn't until 14 years after the massacre of 1973 the state-wide massacres occuring across Texas were finally investigated upon.
In the opening scene, a year after the massacres began occuring in more parts of Texas, two rowdy high school seniors are seen driving around in a Cadillac and whom are looking for nothing but a good time in celebration of their school football team's victory, started calling up Vantia Brock (also known as Stretch), a DJ for a rock station in the Dallas-Fort Worth area. A little later as it gets dark, the two teenage kids call Stretch again from their car phone drunk and crazy, but they paused on the phone for a second as they were in a car chase with a large pickup truck across a rural bridge. While the unseen driver of the pickup truck chases them in reverse, another man called Bubba (the killer from the first movie, also known as Leatherface as his nickname, which is revealed in this sequel) jumps out and turns on his large six-foot long chainsaw and destroys their vehicle and chops off the top of the head of the teenager driving the car. The other teen, left in the car with out any control over the stearing wheel at the time dies on impact when the car collides off the bridge. Stretch listens on the other line in a pure state of shock along with her co-worker, L.G., are left to wonder after the call what happened out there that night.
The next day, local police officers clean up the scene of the crime along with Lefty Enright, an ex-State Trooper or Texas Ranger (the name of Texas State Troopers) now a Lieutenant Detective of a local precinct after most possibly being an official of the Texas State Police for about 40 years. When his commanding officer arrives, Lefty, now affected very very deeply of the loss of his nephew and the condition of his niece (possibly because he is very lonely due to his mental health since he is seen as a nut by his peers) starts to consult with him about how there is very definitely a cannibal family residing in Texas killing people and that how he would make a mistake if not being able to take the case. His superior officer tells Lefty that he will not be included in the investigation as Lefty leaves the crime scene.
However, Lefty didn't take his commanding officer's order seriously and put up an ad in a newspaper advertising where he lives in case anyone has any information about the cannibalistic serial killers. Stretch as affected by those people visits Lefty in his apartment telling him that when the kids called her that night, she recorded it on tape and what she could do.
After visiting Lefty, Stretch goes to a Chili Cook-Off with L.G. and watched the judges determine the winner in their best-tasting chili contest segment of the festival who evidently turned out to be no one, but Drayton Sawyer (Leatherface's older brother, who was the former owner of the service station in the first one, but now owns a kind-off a meals on wheels or in this case meats-on-wheels kind of food processer who decided to abandon the service station during the manhunt of 1973).
After speaking with Stretch, Lefty vowing revenge ever since his family hit the dust, goes to a small hardware store where he purchases three large chainsaws costing hundreds of dollars. Now looking like a soldier, Lefty believes that "those people should know how it feels like to be cut up in to pieces!!!"
Meeting back up with Stretch, Lefty tells her that a great and effective tactic to use on these people would be to play the tape she recorded of their two last victums' grisly and gruesome murder over the radio luring the killers to the radio station for retaliation for "screwing up their business". Stretch took Lefty's advice and did so. Meanwhile, Drayton Sawyer, driving in his meals-on-wheels truck, hears the broadcast which angers him and he immediately makes a call from the phone in his truck to someone.
Back at the radio station as night begins to fall, Strech is confronted by an obnoxious yet strange looking freak who is so-called Chop Top (another one of Leatherface's brothers who was in the Vietnam War during the first installment and is currently Leatherface's assistant in his killing spree and carries his brother, the Hitchiker, around who was ran over by a semi in the first movie who weared a metal plate in his head until his death that occurred 12 years before, giving him the nickname Plate-Head as well). Chop Top asks Strech at where she got the tape of the broadcast in which she refuses to answer him. Just then, Leatherface appears and attemps to kill her with his huge chainsaw with its six-foot long blade. Leatherface accidently hits Chop Top on his head with his chainsaw, exposing his large metal plate, but Chop Top is more or less uninjured. Stretch manages to briefly subdue Leatherface by spraying him with a fire exinquisher and then locks herself up in her office which has a steel door so that Leatherface cannot saw through the door. But instead Leatherface bursts through a wooden wall and confronts her. Stretch survives after Leatherface ends up looking at her at one point right before he was about to split her up and develops a crush on her and lets her live. Just then, L.G. arrives back at the station where Chop Top attacks him and beats him to death with a hammer. Leatherface then appears and lies by jesturing to Chop Top that he killed Stretch and destroyed the audio tape of their latest killing of the two teenagers on the bridge.
The two insane killers then take L.G.'s dead body with them as they leave the radio station and drive away in Chop Top's pickup truck (the same truck involved in the two opening killings). Stretch follows them to their new home, the rundown and abandoned amusement park, called the Texas Battlelands Amusement Park, which is big enough to store the numerous remains of their many victims in as well. However, Lefty also is following Stretch as she pulled out of the radio station parking lot and followes her in his car to the deserted amuesment park. As he finally caught up with her, sort of, she falls through a hole in the middle of the ground filled with skulls and grisly remains of the family's previous victums. Lefty, absoulty furious and drowning in very very deep rage and emotions, takes a belt out of his car able to hold the two other chainsaws he purchased before in as he carries the biggest one he bought along with him as he cuts down the boundries around the park as he makes his way through the cave-like formations in the place where the family is residing and Stretch is trapped in as well.
Meanwhile, Stretch is confronted by Leatherface in the slaughter room as he harrasses her and ties her up. Leatherface then tries to show his affection to her by gorily skinning L.G. and placing the skin of his face over hers. But then Leatherface is called out of the room by Drayton for some assistance. Just then L.G., who actually wasn't dead, revives and Stretch asks him to take the knife Leatherface used to skin him and set her free by cutting the ropes tying her together. After he does so, L.G. finally dies. Stretch takes off through the caves terrified and anxious to escape.
In another section of the underground cave, the growing insane Lefty is freaked out just as well when he finds the skeleton of his wheelchair-bound departed nephew Franklin Hardesty-Enright who was murdered on August 18 1973 about 14 years ago and is now in display in his old wheelchair. Pure and filled completly with anger, hate, and maddness, Lefty makes his way through the caves in order to find destroy the Sawyer family.
As Stretch makes her way out of the cave she ends up running back into Leatherface in which his brothers Drayton and Chop Top also appear to confront Stretch. When Chop Top tells Drayton that Leatherface earlier told him that she was dead, the now angry-than-ever Drayton goes crazy and for all seeing that "Bubba" was too much of a "traitor" to murder her. Unwilling to kill a person since he is only a cook, Drayton orders Leatherface to kill Stretch, but Leatherface refuses. Drayton angrily snatches the chainsaw away from Leatherface and walks away, ordering Leatherface to follow him back to the kitchen while he orders Chop Top to take care of Stretch for later which he responds by knocking her out with a hammer.
Stretch wakes up a little later (with Lefty nowhere to be see) Sally-style, meaning that just like Sally Hardesty-Enright, she is bound to a chair in the family's new cavern-like dining room dinner table now surrounded the the entire Sawyer family which includes the 108-year-old Grandpa "Grandad" Sawyer, Bubba "Leatherface" Sawyer, Drayton Sawyer the cook, Edward "Nubbins" Sawyer's corpse (also known as the Hitchiker), and Robert "Chop Top" Sawyer" all together for another family dinner.
And like Sally, Stretch is presented to be the prize kill for Grandpa Sawyer and she almost gets killed by Grandpa with a blow to the head using a mallet. Suddenly, Lefty bursts through a wall in the dinning room and sees Stretch in their grasp. With Chop Top and Leatherface standing by to attack, Drayton has a conversation with Lefty who tells the cook that they took from him his niece Sally and his sanity and his poor deceased nephew Franklin. Drayton is unmoved and tells Lefty that he's just trying to run a business.
Lefty then attacks wounds Drayton with his large chainsaw. Lefty then uses his chainsaw to free Stretch and tells to leave as he gives the cannibals exactly what they deserve (!) As the wounded Drayton crawls under the dinner table, he orders Leatherface to kill Lefty and orders Chop Top to go after Stretch to make sure she doesn't escape. Leatherface starts up his chainsaw and has a duel with Lefty in a Star Wars-like manner, but instead of lightsabers, with chainsaws (!)
Chop Top chases after Stretch as she runs through the cave passageways trying to find an exit.
Back in the dining room, the duel with chainsaws reaches the climax as Lefty finally gets the upper hand against Leatherface and impales him with his chainsaw as they stand up on top of the dinner table. But Leatherface still will not go down that easily and he still holds his chainsaw after being slammed onto the dinner table as Lefty starts up his two other smaller chainsaws. Drayton continues hiding under the dinner table with the muffified body of the Hitchhiker which Drayton takes out a hand grenade that the Hitchhiker always had on him. Just then, the elderly Grandpa Sawyer stands up out of his chair and throws his mallet at Lefty who ducks and it hits Leatherface instead who drops his chainsaw on the table which hits Drayton underneath who drops the grenade. Lefty then screams a victory call right before the grenade goes off, apparently killing him the Sawyer family and destroying everything in it's path. Lefty's anger and agony he had for a long period of rough times is over (!)
Meanwhile, Stretch has escaped the blast and is still being chased by Chop Top which she finds a skylight and makes it outside into the light of day where she finds herself inside the closed amusement park and standing before a large artificial hill. Chop Top continues to chase after her, but she kicks him off a ledge on the hill and continues climbing up the hill. However, once close to freedom, she encounters the muffified remains of Grandma Sawyer in a santuary at the top of the amusement park hill (!)
The remains of Grandma apparently has a small chainsaw lodged in her hands and Stretch desperately tries to remove it to defend herself against Chop Top who climbs back up the ledge he fell off of. But Stretch has difficulty starting up the old chainsaw in which Chop Top attacks her with a straight razor cutting her several times on her back, neck, sholders and back of her head (similar to what the Hitchhiker was doing to Sally just before he got run over by a semi-trailer in the first movie). Just as he is about to kill her, Stretch finally starts up the chainsaw and impails him with it. The fataly wounded Chop Top then falls back off the ledge, hits the ground and falls back into the hole leading back into the underground cave where he chased her out of.
The eerieness continues as Stretch looses her sanity at that moment, swinging the chainsaw around in the manner in a victory dance atop the hill similar to what Leatherface did as well in the ending of the first movie. The final shots shows the insane Stretch swinging the chainsaw and screaming in reaction to the hell she had been through.