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Ash Williams and his girlfriend Linda take a vacation to an abandoned cabin in the woods (which is basically just catching up the audience with the first movie.). While in the cabin, Ash plays a tape with the voice of the archeologist who used to live in the cabin.  In this tape the archeologist recites some incantations from the necronomicon(the book of the dead).  The recorded incantation unleashes an evil force which kills and later possesses the body of Linda.

While Ash is dealing with this force, the professor’s daughter, Annie, and her research partner, Ed, return from the dig with more pages of the Necronomicon, only to find the bridge leading to the part of the woods where the cabin is located destroyed. They get help from some of the locals more specifically a man and woman to lead them to the cabin via paths along the woods. The people find Ash going insane due to all the stuff the demonds have been putting him through.

Over the couse of this battle that he had to endure thanks to those spirits Ash kills his girlfriend, dismemberes her and severs his own hand from his body. He sees many appliances and household items come to life (this may be Ash going insane or that the items have also become possesed, this was never explained).

He eventually attaches a chainsaw to his stump to help him ash fight the evil.

Eventually, as the people that showed up to help die off one by one, Ash is forced to find the scattered pages of the necronomicon in the basement (thrown down there by the local man in an attempt to take control of the group) where he fights the possessed dead body of the professor’s wife. With these pages, the professor’s daughter chants an incantation that will send the evil force back to where they came from, and dies in the process. The incantation, however, opens up a portal to the 13th century and sends Ash, the sole survivor, back with it.

He is then confronted by a group of knights who confuse him for a deadite, and who then flee when one actually shows up. Ash blasts the harpy like deadite with his shotgun and is hailed as a hero who has come to save the realm, at which point he breaks down and screams into the credits.
 
This sets the foundation for Army of Darkness