Written by Charles Band, C. Courtney Joyner and David Schmoeller, and directed by David DeCoteau, Puppet Master III: Toulon’s Revenge is the third film released in the Puppet Master franchise and acts as a prequel. It is set in 1941 in World War II Berlin. Initially we meet a scientist named Dr. Hess (Ian Abercrombie) who is being forced by Gestapo liaison Major Kraus (Richard Lynch) to create a drug capable of animating corpses for the Nazis. This is because the Nazis want to use an army of reanimated corpses as living shields on the battlefield. Unfortunately whilst Hess manages to reanimate corpses he is unable to control them and they become mindless violent zombies.
Meanwhile in a small theatre across town puppet master André Toulon (Guy Rolfe) is presenting a politically satirical puppet show for children which features a six-armed American Old West puppet named Six-Shooter, who attacks an inanimate reconstruction puppet of Adolf Hitler. Also present at the show is Kraus’ driver Lt. Erich Stein (Kristopher Logan) who spies on Toulon and witnesses Toulon and his wife Elsa (Sarah Douglas) feed the puppets with the formula which sustains their life force. Stein rushes to tell Kraus what he saw. As a result Hess becomes fascinated by the formula and how Toulon developed it. He wants Toulon to freely share his secrets whilst Kraus remains furious at what went on in the puppet show and wants Toulon to be arrested for treason and insulting Hitler.
Later Kraus, Hess, and a squad of Nazi soldiers apprehend Andre and Elsa but when Elsa attempts to prevent them from taking the formula she is shot by a Nazi soldier. Toulon is then dragged away from her. When Kraus prepares to leave, the wounded Elsa spits at him in defiance, and in retaliation, Kraus shoots her dead. Later whilst transporting Toulon away, the Nazi two soldiers guarding him are killed by Pinhead and Tunneler, enabling Toulon to escape and extract his revenge…
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