After escaping from the institution, the Stepfather, now portrayed by Robert Wightman, assumes the identity of a man named Gene Clifford and moves to a small town in California, where he rents a room from a widow named Carol Grayland (Priscilla Barnes) and her teenage son, Andy (David Tom). He presents himself as a charming and helpful man, and soon begins dating Carol and getting involved in Andy's life.
As the Stepfather tries to start a new family, he becomes obsessed with perfection and is determined to eliminate anyone who does not meet his standards. He targets Carol's friend, Matty (Season Hubley), a single mother who has a history of lesbian relationships. He also sets his sights on Andy's girlfriend, Beth (Christine Cavanaugh), a rebellious teenager who challenges his authority.
Meanwhile, a reporter named Toni Stratton (Carolyn Seymour) begins to investigate Gene's past and suspects that he may be the notorious Stepfather who has been on the run for years. With the help of a detective (John Ingle), she tries to gather evidence and expose Gene's true identity before it's too late.
As the Stepfather's facade begins to unravel, he becomes increasingly violent and unstable, leading to a dramatic showdown with Carol and Andy in their home. In the end, justice is served, but not without tragedy and loss.