Stephen, his mother Myrna, and his two sisters Hazel and Eunice visit their grandmother Susana during the Christmas break. Upon their arrival, a relative, Jong erects a tall Christmas Tree, which the family decorates. However, during a night stroll, Stephen notices Elton John, Jong's parrot is missing, while Eunice's doll is found torn to pieces. Their nanny Sonny wonders why the Tree keeps getting taller.
After a Christmas feast, the family goes to sleep. However, Sonny is eaten by the Tree while trying to add more decorations. Stephen, having heard of the commotion downstairs, wakes his Hazel to investigate. Jong also arrives to the scene and the three witness the transformation of the Christmas Tree caused by a monstrous tree dwelling within the leaves of the Tree itself. Before they could run, Jong is knocked out by the monster. Hazel and Stephen race to their mother's room, narrating them that the Christmas Tree was alive. Myrna dismisses Stephen's story and peers outside, only to encounter the tree. Myrna warns Susana to stay in the room, while Hazel and Stephen make a diversion, tripping the Christmas Tree.
Hazel and Stephen rush to the kitchen, while Susana, Myrna and Eunice escape. Hazel finds acid in the kitchen, which Stephen then sprays on the tree, killing it.
"Bangungot"
Marionne goes on a date with Jerome at an amusement park. However, a mysterious woman warns Marionne not to sleep otherwise she will die. Before the woman can exit the park, a red cloaked figure strangles her to death.
In her dorm, Marionne wakes startlingly, realizing it was a dream. Her officemate Tatin then sees her drawing a picture of the red-cloaked figure that strangled the woman in her dream. She recalls that her grandfather died of a bangungot (nightmare), which Tatin dismissrs. Marionne, concerned for her grandfather's past, unlocks the latter's room. Shortly after setting foot, eerie things fly in the air.
The young woman was revealed to be a candle saleslady. She and Tatin have been friends. One day, her brother Tonton and a handsome man arrived at the shop. This man was Jerome. The latter informs them that he will be leaving for one week; shockingly, he was engaged to a woman named Florence, a fact that Marionne became jealous of.
Later on, a young girl wants to order a large candle. Marionne notices the strange-looking parchment with strange words written in ink. She asks the girl's purpose for the candle. The latter said that: "if you want to dream of your love ones, and him to you", she must light a candle before sleeping, and chant the words in the parchment. But she must wake up before the candle is consumed otherwise she cannot leave the dream.
Eager to try this, Marionne kept the parchment and did as the girl said. After the ritual was performed, eerie events began to manifest to Jerome and Marionne. The red-cloaked figure reappears and tries to strangle the two, but they dismiss the event as a hallucination. Late at night, Marionne visits Jerome in the office, complaining about insomnia. She and Jerome begin to hallucinate again: the phantom reappears and tries to strangle them again. As they comfort each other, Florence appears. Shocked by what she sees, she too is nearly strangled by the phantom but is comforted by Jerome. Seeing this, Marionne chases the two. Jerome and Florence walk out of the shop, finally ending up at the peak of an overpass. Florence stumbles and the phantom reappears, this time, Jerome confronts it and they both jump off the overpass, with that being revealed to be Florence's own dream.
Marionne, having witnessed the events, enters the hospital, where she realizes the shocking truth: she and Jerome entered a near-death state already after the spell was performed; this explains why Tonton, Florence and Tatin could not feel Marionne's presence. Florence and Tatin tell them everything, while Marionne sees herself performing the spell and then apparently dropping dead. Tatin shook and jerked her up but she would not respond. Florence's story matched Tatin's: the former found her fiancé hunched over a table in the candle shop but he was on the brink of death in his sleep.
Another thing is: Marionne's grandfather did not die of a nightmare but of a heart attack, and everything that had happened after the spell was performed had been Marionne's nightmare. Jerome on the other hand dreams about Marionne hugging him very tightly; it was revealed that the cloaked figure was Marionne all along. As Marionne and Jerome realize this, Florence cries and begs Jerome to wake up. Jerome tries his best, but Marionne holds him down, determined to spend eternity with the man she loves, but does not love her back. Marionne and Jerome both die, with Jerome dying first.
"Engkanto"
A teenage gothic band heads out for a gig in a remote province. During the long journey, not many of the young band members strike up a conversation, while, their manager Hans keeps complaining why he's the one who should drive. Meanwhile, Tonee and Ian, who were a long-estranged couple, ignored each other. Vince, the band's leader and Richard have a small fight, only to be stopped by Vince's ex-girlfriend Dang.
The group stops by a small store beside the road. The others decide to relax while Vince and Dang disappear from view. Vince reveals he will be leaving them soon, a fact that Dang objects strongly.
Back at the store, Lucio warns them to stay in sight, for they might be kidnapped by an engkanto. He then tells of the story of his son Paeng, who was gathering firewood when he was abducted. He then also explains that the engkanto was the reason why they were lost in the middle of nowhere.
The bus runs out of gas, forcing the band to take refuge in an abandoned resort. Dang, Ian and Tonee then encounter a young and beautiful woman clad in white. Tonee and Ian ask her where is the beach. They follow the woman's directions but get lost. Tonee loses her temper but Ian wants to court the young woman. He is then bitten by the woman, who is revealed to be the engkanto.
Vince then encounters Paeng. He, Dang and Richard demand who did this to him and who is this. As they speak, the engkanto summons her slaves to hunt the band down. Hans, who was looking for gas, gets bitten. Meanwhile, Dang meets Tonee informing the former that Ian was killed by the engkanto and was made into her slave. Suddenly, Tonee is choked to death.
Paeng and Vince then lure the slaves to the beach, discovering they fear water. They hatch a plan: he and Dang will ward off the slaves while Paeng, Richard and Tikoy refuel the bus. Paeng then notices the tree beside them which they realize to be the engkanto's lair. They must burn it to kill the engkanto.
The engkanto, stopped in her tracks for she fears water, rushes to Richard and chokes him. Richard hears that she is the one she needs. Paeng, meanwhile tossed the matches in the air, burning the tree and killing the engkanto.
The remaining band members visit Paeng's home where his father warmly welcomes him. But Lucio informs them that destroying an engkanto's home will not kill her, but only leave her temporarily homeless. She will only move into a new dwelling, for she is a spirit of nature. Mang Lucio was right: Richard was kidnapped by the reanimated engkanto and was never seen again. The next day in the resort, the surviving slave of the engkanto, that was hidden in a box, was revealed to have survived.
