Upon turning 16, Andy was sent to military school having failed to stay in foster homes. Meanwhile, Play Pals decided to re-release its old Good Guy toyline, thinking that all of the bad publicity had died down.
Using old toy parts from the abandoned warehouse, some of Chucky's blood was mixed in with a batter of plastic being used to make the dolls, bringing him back to life once more. Chucky mailed himself to the school where Andy was located and was unexpectedly discovered by a young private named Tyler (Jeremy Sylvers).
Realizing that because Tyler was the first person he told his true identity while in his new body and therefore unable to transfer his soul to Andy, Chucky decided to use Tyler as his new potential body. When Andy found out that Chucky was back, he told Tyler not to trust him. Chucky made Tyler hide in a carnival and Andy gave chase.
While inside of a carnival ride, Chucky first ended up having half of his facial mask slashed off with an iron scythe, his left arm blown off and his chest shot by a revolver and was finally thrown into a giant fan to be cut in several chunks by Andy. Andy and Tyler then leave the carnival ride only to have a policeman arrest Andy and take him away.