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The movie takes place at the film department of Alpine University. Each year for their thesis the film students make a film hoping to win the "Hitchcock Prize" which virtually guarantees the student a shot in Hollywood.

Jennifer Morrison plays Amy Mayfield, a senior struggling to come up with an idea for a film. She runs into the security guard from the original movie Reese, who tells Amy the story of a killer who kills based on Urban legends. Amy loves the idea and decides to use it as her thesis film.

Amy enlists other film students to help her out but they suddenly start disappearing one by one. Eventually they are not only disappearing but are actually turning up dead.

The best student at the school Travis, shocks everyone at the school by committing suicide. His twin? brother comes later in the film trying to find out the real reason for his brother's death, not believing the suicide theory.

Together, he and Amy figure out that everyone that worked on Travis' film is being killed and the only one left is Amy.

One night Amy sees a light on in the tower and goes to check it out. All the remaining characters show up as well including the head of the film department, Prof. Solomon.

Professor Solomon points a gun at Amy and explains to her that when he was a student there, his film tied with another student for the Hitchcock award. They brought in a guest judge to make the final decision and that judge chose the other students over Solomon's. That judge turned out to be Amy's father and his decision destroyed Solomon's life.

Solomon saw Travis' film and liked it so much that he was going to call it his own but first had to kill off anyone that had worked on the film beginning with Travis.

Reese shows up and a gunfight almost occurs unfortunately everyone has prop guns. Finally, Solomon wrestles with Amy and a gun goes off and we assume that Solomon is killed.

In the final credits we see Solomon being pushed around in a wheelchair at a mental hospital. The nurse pushing him is Rebecca Gayheart from the first Urban Legend movie.

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She's the campus security guard at Alpine University who along with aspiring filmmaker Amy (Jennifer Morrison) discover that the killer is the head of the film department.