Nightmare on Elm Street 5 Dream Child is another direct sequel in the Nightmare on Elm Street Franchise. Dan and Alice are now seriously involved. They have bonded over the events of the previous movie and are preparing for their high school graduation with their new friends.
Alice has learned to suppress her dreams and starts to experience what she thinks are waking dreams. She doesn’t understand what is going on and is seriously traumatized when Dan is killed in a car accident by Krueger.
A mysterious child starts visiting Alice in the hospital. She describes him as Jacob, the boy with the sad eyes. Most of her friends are being picked off one by one until she realizes that she is pregnant.
Jacob talks about a mysterious friend who tells him that his mommy doesn’t want him. It is later revealed that Alice is his mother and Freddy has found his way back through Jacob’s dreams since infants in the womb sleep the majority of the time in utero. The scary man who is supposed to be Jacob’s friend is more along the lines of trying to befriend him so that he can be reborn through Alice with the powers that Kiersten bestowed her with.
With this added need to protect her child, her last link to her love with Dan, Alice finds the courage to rescue her son and defeat Freddy. Since the child revealed what his name was a more happy ending is revealed with this movie as Alice is playing with Jacob at the end and calls him “Jacob Daniel.”