The remaining eight contestants are watching a scary horror movie which stars a psycho killer with a chainsaw and one of his hands is a hook. Izzy revels in the actions while DJ is mortified by what he sees and Duncan pulls out a hook that frightens DJ even more. After the film is over, Gwen and Duncan compare what they like most in the movie they both like Bloodbath 2: Summer Camp Reign of Terror. Heather is unimpressed and wonders aloud what their next challenge will be and Geoff wonders where Chris is. Moments later, the campers see Chris and Chef, with frightened looks on their faces, getting on the Boat of Losers with their luggage and leaving the island. Owen finds a bag left behind along with a newspaper that has an article about a psycho killer with a hockey mask and a hook for a hand and owning a chainsaw. DJ thinks it seems real but Heather dismisses the whole thing as another stunt by Chris but Owen points out Chris, in his hurry to leave, forgot his hair gel. DJ is terrified by the situation and the feeling they are being watched and moments later, the scene shifts to Chris, who is watching the contestants with the aid of a number of monitor screens. Chris explains that tonight's show will focus on showing the campers struggling to survive a psycho killer with a chainsaw and a hook.
Back on the island, Gwen says they need a game plan but Heather says she's going off to apply a facial. Gwen says the first rule of slasher films is to never go off alone and Heather replies that might be true if she was in a movie but they are just getting punked by Chris, in her opinion. As Heather leaves, Izzy muses she is sealing her fate and makes a throat cutting gesture to indicate what she thinks it is. Gwen gets the contestants to join her at the bonfire site to talk strategy but Izzy grabs Owen to one side and the two head out in the the woods together. Owen tells Izzy about the time he won a hot dog eating competition when he ate 198 hot dogs and Izzy is impressed by this story
At the bonfire site, Gwen goes over survival rules such as not going off on their own, not going into the woods alone and never making out in the woods or the person(s) will die for certain. Gwen asks where Owen and Izzy have gone to and Duncan replies that they have gone into the woods and are breaking all the rules.
Back in the woods, in an act of spontaneity, Owen and Izzy jump into some bushes nearby and start making out even as a figure looking like the escaped psycho killer nears the area. Moments, the two run from the area screaming with the figure running after them. After a short chase, Owen falls off the edge of a cliff and hits a cactus, fire hydrant, goat, a plunger that sets off explosives and a campfire before hitting the bottom. Izzy follows him with the same sounds ringing out as she descends and lands on Owen. Moments later, the killer approaches them and Owen pushes Izzy in his direction to save himself. Owen runs away and a few moments later, he enters the tent where Chris monitoring what is going on. Chris explains that the "killer" is actually Chef in disguise and it is the campers challenge to "survive the challenge. Izzy is upset with Owen's actions earlier and after Chris informs them they have been eliminated, Owen asks, in a roundabout way, how mad she is, Izzy punches him in the face.
Chris sends Chef out to do more terrorizing and back at the bonfire, Gwen continues to go over the plan for surviving by showing the figures she has drawn on a chart and she notices DJ and Geoff are missing and Duncan says they went to the washroom. At the washroom, DJ begs Geoff not to leave no matter what and Geoff agrees to stay. However, Geoff is lured away by the sound of an ice cream truck and when DJ sees Heather wearing lime green facial and towels, he runs screaming from the washroom. After running over hills, off a cliff, through the base of a lake/river, down the Dock of Shame and into Chris' tent, DJ is brought to his senses when Izzy slaps him across the face. Chris tells DJ the truth about the killer and points out DJ bailed ut without even encountering Chef in disguise but DJ protests that Heather's appearance was scary as well.
Gwen enters the washroom through the hole DJ made when he ran away and asks Heather if she is okay. Heather says she is fine and wants a shower without Gwen around. After Gwen leaves, Heather goes to enter the shower but is terrified to see the killer standing a few feet away. A short time later, in Chris' tent, Chris lectures a bug eyed Heather that if she had paid attention to the rules of a scary movie, she'd still be in the game.
At the bonfire, Gwen asks where LeShawna has gone and when Duncan says she went to get something to eat in Chef's kitchen, Gwen sighs and crosses out LeShawna's figure on her chart. In the kitchen, LeShawna grabs a plate of brownies and hears her name being whispered followed by an encounter with the killer. LeShawna talks tough at first but ultimately runs off and winds up in the tent with Chris and the other people eliminated.
Outside, Geoff is outside looking for the ice cream truck he thought he heard earlier and is tapped on the shoulder by the killer. Moments later, Chef deposits a wide eyed Geoff in the tent with Chris and the others and DJ chastises Geoff for leaving him earlier. On the monitor nearby, Gwen is seen at the bonfire citing a scary movie rule that the party guy is a prime target right after the big, lovable jock and DJ is not impressed she waited until now to cite that rule. Gwen crosses out DJ and Geoff's caricatures as being eliminated and talk turns to Duncan's pyromania side.
Hearing his name being whispered, Duncan makes his way down to the dock and encounters the killer. Duncan hurls a chair, a canoe, a life preserver, a surf board and a fish at the killer before watching the chainsaw cut into the dock just in front of him. Duncan grabs the chainsaw and prepares to see who's behind the mask.
Elsewhere, Gwen is eating a sandwich at the dining hall when a figure carrying a chainsaw and a hook approaches her but Gwen is not frightened. Meanwhile, Duncan, carrying the mask, and Chef enter Chris' tent and everyone notices that Gwen is about to deal with the real escaped killer. As they run in a hurry to save Gwen, Gwen talks to the killer as if he is an actor and moments later, Chris and the others arrive and yell to Gwen that she's facing a real killer. Gwen screams and kicks the killer in the face several times. Upset by this treatment, the killer leaves muttering that he was treated better in prison and Gwen is congratulated by Duncan for her actions.
Afterwards, Chris states that it is agreed that Gwen receives invincibility for this challenge and DJ is unanimously walks the Dock of Shame. After a group hug, DJ leaves the island while the killer, watching from nearby, whispers Total Drama Island and whines about his sore nose.