Hans Röckle is a puppeteer, inventor, blacksmith and more. He is challenged by the Devil (in almost a dozen fancy costumes) who offers him even more inventiveness, against his soul should he ever make money with an invention, build something twice, or cease inventing for 7*7 hours.
Toulon, a puppet maker, discovers an ancient Egyptian potion and uses it to bring his creations to life. His puppets become murderous little demons and escape. Distraught, the master takes his life. Years later, psychics tune into the existence of the monstrous marionettes and set off to stop them.
In Berlin during WWII, the Nazi regime is attempting to develop a drug that will reanimate the dead in order to use them in the war effort. Toulon arouses suspicion as a Nazi dissident, and his secret is discovered. During a Nazi raid on his home, Toulon's beautiful wife is murdered. Toulon vows revenge, with the help of his animated puppets.
The puppets return, this time they hunt some Paranormal Researchers to take their brain fluid for the dead/living puppet master, Andre Toulon