The game begins three years after the events of "Hail to the King". Ash Williams is telling the story of his battles with the Necronomicon Ex-Mortis to an Asian man, and then starts to tell the story of how he ended up with the man in the first place through a series of flashbacks.

Dearborn, Michigan: Last Night A special "Live" episode of Mysteries of the Occult starts at the local KLA2 television station (a reference to the movie The Day the Earth Stood Still; KLA2 is pronounced "Klaatu," the name of the protagonist.) Trisha Pettywood, a journalist out to expose the truth of the Necronomicon, is the host, with her guest, the parapsychologist and best-selling author Professor Alex Eldridge, a colleague of the late Professor Raymond Knowby, who has written a book based on the Necronomicon. Ash is sitting at his favorite bar in the red-light district, having a few drinks during the broadcast, and badmouths Eldridge, claiming that he wouldn't know the real Necronomicon from "a roll of extra-fluffy two-ply". The bartender, who apparently knows Ash, gives him a free drink, telling him that he is sorry about Jenny, a subject which is apparently still very painful for Ash. Trisha also mentions a local Dearborn man (namely Ash) who claims that the Necronomicon can raise the dead and interdimensionally travel through time, but Eldridge dismisses it as the sad, depraved ramblings of a lunatic, while also claiming that it is easy to get caught up in the book's mythology. Hearing this, a drunken Ash babbles on about his remark, and also about his fights with the Deadites and how he had to amputate his own right hand. Trisha has somehow obtained the tape recording of Professor Knowby, and plays it live as a "treat" to the viewers. Ash, knowing what will happen if they do so, shouts at them not to play it, but of course, they do not hear him. The Deadites are released into the world once more, and the Evil Force floats through town, right into the bar, and possesses the bartender who is promptly shot down by Ash who strangely has his boomstick with him.