A detective, Jersey Callum (Ed Nelson), convinces a depressed psychic to come out of retirement in order to help him identify three dead children that were presumably kidnapped by a mortician. This mortician also fed them human remains. In a police interview, this Asian man insists that these are demons, not children, and that his family was responsible for keeping them away from humanity the past few hundred years.
The majority of the movie takes place in the city morgue where they have to survive being attacked by these extremely creepy dead kids. However, the last third gets somewhat goofy as the Mrs. Poopinplatz (Phyllis Diller) gets contaminated by one of them and transforms into a large, puppet-liek creature that looks like that kid from FREAKED after he turns into a monster. And to top that off the woman's poodle turns into a guy in a poodle-monster suit.
However, this is one of the more original zombie movies out there, particularly in that it features dead kids.