Paranormal Entity is a found footage horror film that centers around the Finley family, who believe their house is haunted by a malevolent entity. The film is shot in a documentary-style format, with cameras set up throughout the house to capture any paranormal activity.
As the film progresses, it becomes clear that the entity is becoming more and more violent, particularly towards Thomas Finley's sister, Samantha. Thomas becomes increasingly desperate to rid the house of the entity, even resorting to performing a bizarre exorcism ritual on his sister.
The tension builds to a climactic scene in which the entity attacks both Samantha and Edgar Lauren, a paranormal investigator brought in to help the family. Thomas is ultimately blamed for their deaths and is taken into custody. However, he claims that the entity was responsible for the murders, and that it was the only way to stop it.
The film is known for its controversial ending, in which it is revealed that the video footage shown throughout the movie was actually filmed by Thomas himself, who had become possessed by the entity. He took his own life in an attempt to stop it from spreading further.