The story centers around a married couple, Ryan and Emily, their precocious young daughter Leila, and two houseguests, Ryan's brother Mike and Emily's friend Skyler, who are all counting down the last days until Christmas in their home in Santa Rosa, California, filming every moment of their lives for reasons barely explained. Ryan and Mike find the aforementioned box of videotapes and a unique-looking, still-functioning old video camera that, when used, reveals that it can see and capture strange visions around the house that can't be seen with the naked eye, or any other recording device. The old tapes reveal a weird cult rituals involving the two young girls from the prior films, Kristi and Katie, and this look into the past begins to manifest itself with strange occurrences in the present, especially tied in with Leila, who begins to sleepwalk and talks to an invisible entity named 'Toby'. With his newfangled camera and a few other devices, Ryan sets about trying to capture just what's going on, and hopes he can turn away whatever malevolence is affecting his daughter before it's too late.
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