After Josh's rampage through town and the death of Moose Morgan at his hands; because Moose was attacking and trying to kill him out of fear, Josh is now in the Frank's basement in a steel reinforced cage. He's starting to remember who he was and knows that he's supposed to be dead. He remembers music and Sara and that he loves her, and that he's not human anymore and should be dead.
Meanwhile, Moose is buried and life continues for Sara, Jessie and Eddie; though they do feel responsible for the death of a classmate. In the coming days Jessie is asked by Moose's little brother to the Halloween dance and Eddie and Sara are starting to fall for each other. In the midst of this and the typical goings on of school, the three find out that Josh and Jessie's aren't human and they aren't dead, like Grandfather Frank told them. They're zombies and Josh has dug them up in the graveyard, where they've been, in caskets, for the past 12 or so years, wanting to get out. They were made by Grandfather Frank as a start of a better species of human, had living, breathing children of their own and then began to decay and deteriorate soon after Jessie's birth. And now they want revenge on Grandfather.