Cassie Keller (Emily Osment) is a goth girl who just moved with her family to a new neighborhood and school. She loves to play scary pranks on the popular kids at school and her younger brother Max.
Priscilla Wright (Brittany Curran), a bully, is elected Halloween Queen for the school’s annual Halloween fair. Cassie retaliates against Priscilla’s rude comments against her by putting live cockroaches in the Halloween piñata, which Priscilla is due to break; she is showered with the insects after she breaks it, and is mocked by the student body.
Cassie finds a mysterious Halloween store in an alley. The owner (Tobin Bell) insists on selling her an old book titled The Evil Thing, which contains a warning not to read it aloud or think about “The Evil Thing,” a two-headed monster: one head sucks its victim’s blood while the other head eats flesh. That night, Cassie ignores the warning and reads the book to Max as revenge for him unplugging her computer.
Cassie’s parents leave for a Halloween party and The Evil Thing is brought to life by Max’s thoughts. It captures him, Priscilla and a Papa John’s Pizza deliveryman. It is up to Cassie and Sean (Cody Linley), a popular boy she likes, to save them.
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Cassie goes to the store owner for help and discovers that he travels around the world each Halloween, searching for a person who loves to scare people, and tricks them into releasing The Evil Thing by reading the book in order to teach them a lesson. He leaves them with the riddle, “Two heads are better than one; that’s the way to get the bloody job done” before his shop disappears.
Sean and Cassie deduce that if they get blood from a roast that Cassie’s mother made and throw it onto The Evil Thing, one head will attack the other. In doing so, it will devour itself. Meanwhile, The Evil Thing’s babies hatch and try to eat the victims. The pair try to lure the monster away but fail. They accidentally drop the blood near Max, who must now conquer his fears. Encouraged by Cassie, Max tosses the blood onto The Evil Thing, causing its heads to attack each other. The monster eats itself, exploding in a shower of yellow blood, killing itself and its offspring.
Max, Sean, and Cassie save Priscilla and the pizza deliveryman. Cassie and Sean then burn the book and set aside their thoughts about The Evil Thing. However, when Cassie’s parents come home, they find the book in the fireplace. The father mockingly reads it out loud, reviving The Evil Thing once again. The film concludes with Cassie realizing that The Evil Thing has been brought back to life.
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