The much rumored "Theatre of Blood" curse hangs over a university theatre program and its building. An award winning playwright and professor is hired to get the program and the theatre major going again. However, she is murdered in the theatre just before her new play, "Death Must Go On," now in final rehearsals, can open.

The administration wants to close the theatre out of respect to the murdered professor but the passionate students decide to pull an all-nighter to see that the playwright's last work debuts on time. The students are sure this is what the professor/playwright would have wanted. They convince the university powers that be to allow this to happen and the students lock themselves in to get everything ready.

Over the night, however, several students meet their own deaths in bizarre, theatrical fashions. Is the curse real and is there a killing ghost within the theatre's walls?