The film opens with a scene left off from Paranormal Activity 3 where Katie and Kristi watch as Dennis’ spine is crushed by a mysterious force. Grandma Lois takes the girls upstairs while the same entity takes the camera with them. They all go into a dark room where a man speaks to the girls about “Toby” and how they are critically important to his plan. Twenty-five years later in 2013, Ryan Fleege (Chris J. Murray), his wife Emily (Brit Shaw), and their eight-year-old daughter Leila (Ivy George) are about to celebrate Christmas, when Ryan’s brother Mike (Dan Gill) moves in after breaking up with his girlfriend. Along with them, is Skylar (Olivia Taylor Dudley), who notices that Leila is talking to an imaginary friend named Toby. While setting up the house that day, Mike finds a box of old video tapes, dating from 1988 to 1992. In them contains videos of Kristi and Katie with their mother and her boyfriend Dennis in 1988, whilst others from 1992 are in Lois’s house where the two are practicing supernatural abilities with the mysterious man. While watching one of the videos, Ryan and Mike notice that the girls are seemingly aware of the two’s presence: they are able to foresee Ryan and Mike’s every action as the pair simultaneously watch the video. Leila’s interactions with Toby coincides with Ryan using the old camera around the house, where he notices the camera picks up spiritual beings. He later decides to roll the tapes overnight to see what weird things are occurring. One night, a black figure arises out of the ground and hovers over Leila for several hours, and she eventually talks to it. Soon, Skylar walks in and checks on Leila, only to be attacked by the spirit. The next night, Ryan tapes Leila sleeping, but a dark and demonic spirit appears on camera and forces him to drop the camera. The following day, Ryan and Emily go out for the night and leave Skyler and Mike to take care of Leila. After experiencing the entity outside, they discover a slab of concrete in the ground with Katie and Kristi and the year 1987 etched in it. They discover their house is built on the same property that Katie and Kristi used to live in before their house burned down in 1992. Leila gradually becomes less talkative and this worries Ryan and Emily enough to call Father Todd (Michael Krawic). He interviews Leila, and as a result, Leila attacks him. Todd is convinced that ‘Toby’ is a demon linked to a cult called The Midwives. Ryan researches the cult, and realizes they killed a family in Nevada related to a boy named Hunter, who was born on the same day as Leila. He also learns that Leila’s blood is needed to finish his transformation into a physical being. One night, Leila’s interaction with Toby leads her to open a doorway to another realm into which she disappears. Ryan and Emily find her soon after, but flee with Leila to a hotel. Father Todd comes back and attempts to cleanse the house. He decides to trap the demon, upon which the demon violently shakes the house. Todd is strangled and dragged away by Toby, leaving the family to finish the cleansing. Ryan entraps the demon in a white sheet and finishes reciting a prayer. Leila returns to normal and the demon disappears. After thinking the ordeal is over, Skylar starts to vomit blood all over Mike, but the blood burns him, killing them both. Leila then flees, and Ryan and Emily chase her upstairs, but Ryan is killed when a large arm impales him through his chest. Leila sprints away into the “portal” in her room with Emily following her; she arrives at Kristi and Katie’s mother’s house in 1988, where she finds a young Katie and finally confronts the human version of Toby. Emily pleads with the demon to spare Leila, but is killed and her body is tossed at the camera as it flips over. Leila identifies the demon “Toby” and the two walk off as the camera cuts off, ending the film.