This movie was a rather disappointing sequel to Phantasm. The child hero Mike, from the first movie, has grown up, and he and the ice cream man Reggie, also from the first movie, team up to try and destroy the Tall Man. There is a young woman who is having visions of both Mike and the Tall Man, and Mike is having visions of her. Eventually they all meet up and face the Tall Man.
In the first movie, everything is very dreamlike, even up to the end of the movie. The aim of the film seems to be more to create strange and disturbing images than to tell a good solid story. In the first film, that worked. In the sequel, the result is a boring film with a few good scenes interspersed.
Maybe it seemed more boring in comparison because I expected to learn more about the villain (The Tall Man), and why he does what he does, and instead I learned nothing. It really seemed like a retread of the old movie, with some sex thrown in this time for good measure.
Only people who have seen the first film should bother seeing this one, since otherwise you will probably miss what little interest the film holds.