The owner of the funeral home and prime suspect in the case, claims the three mummified corpses in question are not children but ancient demons known as "kyoshi." It seems the little monsters have been around for centuries as a result of an age-old curse and can only be placated with offerings of human flesh -- with which the mortician has been supplying them his entire life. When Chen is jailed on murder charges, the under-fed ghouls awaken in search of dinner, trapping the staff inside the mortuary walls and munching down on them.
The survivors, including Rose and Nelson, use every means at their disposal to combat the demons -- which have managed to possess the bodies of morgue attendant Mrs. Poopenplatz (Phyllis Diller) and her poodle, mutating them into hideous hell-beasts (not much of a stretch, really). Despite the presence of Diller and some rather outrageous set-pieces, director James Cummins plays the material remarkably straight. Standouts include a good performance by Rose and some truly creepy demon-attacks, marred only slightly by a clunky script and uneven pacing.