Directed by: Renny Harlin
Starring: Robert Englund, Brooke Bundy, Lisa Wilcox, Rodney Eastman, Andras Jones, John Beckman, Kisha Brackel, Wanda Bursey
Freddy Krueger: How's this for a wet dream?
Freddy Krueger: You flunk.
Freddy Krueger: Alice, come to daddy.
Freddy Krueger: You shouldn't have buried me. I'm not dead.
Alice Johnson: Rest in hell.
Freddy Krueger: No pain, no gain.
Freddy Krueger: Sayonara, Rick-san.
Continuity mistake: At Rick's funeral, Debbie gives Alice her spike bracelet. The spikes are flat and there aren't that many of them, but at the end when Alice is getting decked out to fight Freddy she pulls the bracelet out of her drawer, and the spikes are very menacing looking and there are more of them. (00:55:25 - 01:13:20)
Trivia: In the beginning of Nightmare on Elm Street 4: The Dream Master we learn Kincaid's dog is named Jason. Perhaps as a homage to the killer from Friday the 13th?
Question: Why does Freddy use Alice to gain access to new victims?
Answer: He'd killed her friends in the previous movie, remember? When he came back she'd had time to recover and make new friends.
That was Kristen, not Alice. Alice gives the answer to this question herself, while talking to Dan in the diner. She says that Kristen was the last of the children of the people who killed Freddy, and "maybe Freddy can't get to the new kids unless there's someone to bring them to him."
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Answer: As Kristin was being burned to death in the boiler, she passed her ability to pull other people into her dreams to Alice. This enabled Freddy to get new victims.