One hundred years later, Ernest, a sanitation worker, helps a few of his middle school friends, Kenny Binder, Elizabeth and Joey, construct a tree house in the same tree that unknowingly contains the dormant creature, after the mayor's sons demolished their own cardboard haunted house. When Old Lady Hackmore discovers this, she angrily leaves. When Ernest follows her, he learns the story of Trantor and idiotically reports it to the kids. Inadvertently, Ernest releases the troll. Joey is walking home from the tree house when he hears something rustling through the trees. Joey slowly walks and slips down in a muddy hole. Trantor grabs Joey's wrist and turns him into a wooden doll. Ernest finds Sheriff Binder, who is Kenny's dad, and explains the situation but they do not believe him. After none of the towns folk will assist Ernest because they care about the Halloween party, he mounts a one-man (and one-dog) defense operation in preparation for Trantor's appearance. Meanwhile, Trantor captures a boy on a skateboard for his second victim.