I first saw this in the early 90s on a vhs which I used to own. Revisited it recently on a dvd which I own.
This film takes place years after the events of the previous one.
After killing every child and teenager in the town, Freddy confronts the last survivor from Elm street in dreams but spares his life.
The boy is taken to a youth shelter by a cop where the boy meets other teens n becomes a patient of a psychiatrist.
This one shows Freddy's life story n for the first time we have a good opening sequence. Here the setting is good initially of that of a desolated town without any kids n the van trapped in the time loop.
But then the whole shelter home stuff gets silly.
Freddy's humor is back too. The scene where he dances behind the kid with the ear prob is darkly funny. But the tormenting of the kid by Freddy is too much.
We have a young Breckin Meyer n Johnny Depp in a cameo appearance.