Mike and Reggie continue to hunt the mysterious Tall Man...
According to Reggie Bannister, Universal Studios refused to theatrically distribute the film due to a conflict with Coscarelli. The film was released direct-to-video in 1994. In 1996, the Los Angeles Times reported that "Phantasm III" was one of the top 100 highest selling direct-to-video titles.
Some say this is the weakest in the series. As I have not seen part four yet, I cannot comment with authority, but I will say it is not as great as the original or the sequel. I still enjoyed it, and it has some fun moments and good special effects, but little seems to happen overall. But I suppose any time you see Reggie with a flame thrower, that is a good thing.