The film begins where the previous film ended. Ragini since that incident has been at Thane Mental Asylum and even there she has been disturbed by the ghost of that house where she went. Meanwhile, Ragini’s MMS tape has gone viral – along with rumours of the house’s haunted nature, where the MMS was filmed. This catches the attention of a sleazy director, Rocks (Parvin Dabas) who decides to make a movie on the haunting. He signs an ex-porn star, Sunny Leone (Sunny Leone) as the lead actress and decides to shoot the movie in the same house where the MMS was recorded.
Sunny, who takes an instant liking to the script, seeks permission to meet the real Ragini (Kainaz Motivala), (who is now in a mental asylum), to get a better in-depth look of the character she wants to portray. But the meeting goes horribly wrong when Ragini stabs herself brutally in the neck.
Later, the cast and crew arrive at the haunted house to shoot and strange things begin to happen, especially to Sunny. Elsewhere, Dr. Meera Dutta (Divya Dutta), a psychiatrist who specialises in cases for which science has no answers, takes up Ragini’s case. After going through old news paper clipping and video tapes of Ragini, she finds the truth regarding the haunting.
