A young director Alex comes across a horror movie «Grave Encounters». The movie do not impress him but his attitude changes, when someone anonymously sends him a strange video that looks like a cut scene from the «Encounters». Intrigued by the message Alex tries to find the creators of the hit horror film. The futility of his attempts hits him upon an idea that everything from the «encounter» actually happened and its filmmakers are dead. While continuing the investigation and receiving new evidence for his theory, Alex ventures upon a new step. He offers his friends to get into the same abandoned mental hospital where «Grave Encounters» was filmed.