Cast: Sunny Leone, Saahil Prem, Parvin Dabas, Sandhya Mridul, Anita Hassanandani, Karan Taluja
The film begins from where the previous film ended. Ragini's MMS goes viral and this catches the attention of a failed director, Rocks (Parvin Dabas) who decides to make a movie on the scandal. He signs Sunny (Sunny Leone) as the lead actress and decides to shoot the movie in the same house where the MMS was shot.
Sunny, who takes an instant liking to the script requests the director to let her meet the real Ragini (Kainaz Motivala) who is now in 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 her neck, killing herself. Later, the cast and crew arrive at the haunted house to shoot and things start going haywire. Then entered Dr Meera Dutta (Divya Dutta), a psychiatrist who specializes in such horrible cases. After going through old news paper clipping and video tapes of Ragini, She finds the truth regarding the ghost.
It was then revealed that the ghost in other life was a married woman with two daughters and a son. She was much attached towards her son whom she conceived after long prayers. One day, the boy and his two sisters were playing hide and seek, then the boy slips into well and dies, driving his mother insane and in quest to resurrect him from the dead. Upon believing the two black magic performing priest, the mother sacrifices both the daughters. When the villagers finally arrived, they assumed that the mother might be practicing witch craft and punished her by burning her alive hanging from a tree. The woman finally drops from tree and after cursing all, kills herself by stabbing in her neck with the rattle toy with which her son used to play.
Mrs Dutta then rushes to the shooting location in order to inform the cast and crew to abandon the shooting in that place and to leave that house immediately. But it was too late as the ghost has already possessed Sunny and started killing the junior artists along with supporting cast by either luring them into having sex or killing them by catching them unguarded when they are all alone. Only the scriptwriter Satya (Saahil Prem) and one side actor Monali (Sandhya Mridul) are left alive by running for their lives from the ghost-possessed Sunny.
As the trio fights out Sunny, Monali gets killed. When Satya accidentally steps on the rattle toy with which the mother committed suicide prior to becoming a ghost, it caused pain to Sunny temporarily and thereby subduing the ghost to temporarily leave Sunny. Mrs Dutta comes to know about the situation and urges Satya to destroy it. Eventually the ghost is destroyed along with the rattle. And at last, Sunny, Satya and Mrs Dutta left the house solving the mystery once and for ever as they thought, but at the end when they leave it shows a rocking chair rocking back and forth and a child's voice, signifying that there is still a ghost in the house and maybe a continuing story.