A year after the film, Jack Skellington once again feels Halloween has become dull and repetitive. He talks with Dr. Finkelstein improving the next Halloween with new scares and discoveries. The doctor gives Jack the "Soul Robber", a green, whip-like weapon. He then leaves to look for new frights; remembering his lesson from before, Jack searches solely in his world. Equally bored Lock, Shock, and Barrel revive Oogie Boogie, who brainwashes Dr. Finkelstein into creating minions for him. Oogie also kidnaps five of the seven Holiday World leaders. Oogie plans to become the "Seven-Holidays King" once he takes control of Christmas Town. But on December 23, Sally manages to send a magical paper airplane to find Jack to warn him of what has happened.
Jack returns to Halloween Town on Christmas Eve, just to find Oogie's shadow. After defeating the shadow, he is given the Halloween Holiday Door and finds everyone was deceived by Oogie into boobytrapping the town.
Armed with the new "Soul Robber" weapon, Jack navigates through familiar and new environments, each filled with puzzles and enemies that need to be vanquished. Along the way, Jack can transform into different forms—such as the Pumpkin King and Santa Jack—to utilize unique abilities and combat styles. As players progress, they will encounter various characters from the original movie, such as Sally, Dr. Finkelstein, and the mischievous trio Lock, Shock, and Barrel.
