In 1990, two years after Chucky was destroyed by the Barclays and detective Mike Norris, the killer "Good Guy" doll Chucky (voiced by Brad Dourif) is rebuilt from scratch by the PlayPals company to prove there is no fault with the dolls. As a result of Andy Barclay (Alex Vincent) blaming Chucky for the murders committed, the company has suffered. One of the men working on Chucky is killed via electrocution; as a result, the CEO of the company Mr. Sullivan (Peter Haskell) orders his assistant Mattson (Greg Germann) to cover the accident and get rid of Chucky.
Meanwhile, Andy is now in foster care, due to his mother being in a mental hospital for supporting his story about Chucky. Andy is adopted by Phil (Gerrit Graham) and Joanne Simpson (Jenny Agutter). In his new home, Andy meets his new foster sister Kyle (Christine Elise).
After work, Mattson goes to a corner store and while he leaves his car, Chucky uses the car phone to ring Grace Poole (Grace Zabriskie), the manager of Andy's foster center. He claims to be a relative of Andy's in order to get his new address. He then carjacks the car and orders Mattson to drive outside the Simpson household at gun point. Chucky then kills him by suffocating him with a plastic bag. In the house, Chucky accidentally activates "Tommy", another "Good-Guy" doll, and destroys him with Joanne's ornament. Chucky then buries the doll in the garden and takes his place as "Tommy". Phil punishes the children believing one of them broke the ornament. After Andy spends the rest of the day with Kyle, Chucky waits for nightfall and ties up Andy in order to possess him. However, Kyle, who snuck out, arrives and the ritual is interrupted. After Andy claimed Chucky tied him up, Phil throws Chucky in the basement.
The next day, Chucky hitches a ride on the bus to Andy's school. Andy's teacher Miss Kettlewell (Beth Grant) discovers an obscenity Chucky wrote on his worksheet. Believing Andy was responsible, she forces Andy to stay in the classroom as punishment, and locks Chucky in the closet. Andy escapes, and Chucky beats Miss Kettlewell to death with a yardstick. After Andy insisted Chucky got him in trouble, Phil considers taking him back to the foster center.
That night, Andy tries to kill Chucky with an electric knife in the basement, but Chucky attacks him. Phil goes to investigate the commotion but he is killed by Chucky who trips him and throws him to the floor, snapping his neck. Joanne, convinced that Andy killed him, sends him back to the foster center. Later, Kyle discovers the buried doll in the garden and realizes Andy was telling the truth all along, and rushes in to find Joanne dead. Chucky attacks Kyle and orders her to take him to the center. There, during a false fire alarm, he kills Grace and orders Andy to take him to the PlayPals "Good-Guy" factory for the transfer.
Kyle follows Chucky and Andy to the factory. After knocking Andy unconscious once again, Chucky fails to possess the boy, since he spent too much time within the doll's body. Enraged, Chucky decides to kill Andy and Kyle instead. Chucky murders a factory worker. He then loses one of his hands, which he replaces with his knife, and his legs, but still goes after the two. Kyle and Andy then pour molten plastic over him before inserting an air hose in his mouth, which causes his head to explode and finally defeating him. Andy and Kyle leaves the factory for "home", with Andy asking where "home" is and Kyle responding that, in truth, she doesn't know.
In a different ending which is shown during the USA Network, Syfy and TNT airings than the one in the theatrical release, after Andy and Kyle come out of the factory, we are taken back inside, and shown pieces of Chucky, most notably his eye stirring into the vat of plastic, then a new head is made (without hair or eyes); the head makes an evil grin, setting the scene for Child's Play 3.
United Artists released the original Child's Play in 1988 and greenlit the second film. The sequel was in pre-production when an UA executive told producer David Kirschner that the film was put on hold as the studio was about to be acquired by the Australian group Qintex, who decided that in their best interest was not to make horror films. After offers with Paramount Pictures, Warner Bros., Columbia Pictures, 20th Century Fox, The Price Company, Carolco (who during this time had a distribution deal with Columbia's sister studio, TriStar Pictures), New Line Cinema (now a label of Warner Bros.), and Disney's Touchstone Pictures label to buy the film were rejected, Kirschner produced it independently with Universal Pictures distributing.
A tie-in novelization to the film was later written by Matthew J. Costello. The author added in some of his own plot scenes exclusive to the novel, such as going deeper into Andy Barclay and Chucky's past. Chucky is characterized to have an absent father and his abusive mother being a dwarf. Chucky got teased a lot because of this and later strangled his mother to death. Also, Chucky was put in special classes when he was younger.
Its opening weekend earned an estimated $10,718,520 on 1,996 screens in the US. The film grossed an estimated $28,501,605 in the US and was #1 at the box office. It grossed an additional $7.2 million internationally.
Rotten Tomatoes gives the film an approval rating of 40% based on 15 reviews. Evan Dickson of Bloody Disgusting, in describing how it surpasses the origin film, wrote, "Child’s Play 2 manages to strip away all artifice and still manage to be an effective slasher." Variety wrote, "Child's Play 2 is another case of rehashing the few novel elements of an original to the point of utter numbness."
Child's Play 2 was first released on VHS in North America on April 11, 1991. The film was later released on DVD in 1999. Child's Play 2 was also re-released in The Chucky Collection (which also featured Child's Play 3 and Bride of Chucky) in 2003. On September 19, 2006 it was released as part of Chucky - The Killer DVD Collection (alongside Child's Play 3, Bride of Chucky, and Seed of Chucky). On October 8, 2013, Child's Play 2 was re-released on DVD and Blu-ray as part of Chucky: The Complete Collection (alongside the original Child's Play, Child's Play 3, Bride of Chucky, Seed of Chucky, and Curse of Chucky).
The film was followed by a sequel in 1991, Child's Play 3.