SYNOPSIS
One year after the events of the first film, Julie James (Jennifer Love Hewitt) is attending summer classes in Boston, in avoidance of returning to her hometown of Southport. She suffers from memories and nightmares of the accident and brutal murders of her friends by the vengeful fisherman, Ben Willis (Muse Watson), the summer before.
Julie's friend Karla Wilson (Brandy) receives a phone call from a local radio station, asking her to participate in a contest to win an all-expenses-paid vacation to the Bahamas for the Fourth of July weekend. Karla must guess the capital of Brazil. Her answer is "Rio de Janeiro". The radio host tells her she is right (though the correct answer is Brasilia) and she is given four tickets for the trip. Julie invites her boyfriend, Ray (Freddie Prinze, Jr.), but he declines. He is hurt by her earlier refusal to visit him in Southport. Ray intends to propose to Julie, and changes his mind about the trip, planning to show up as a surprise.
That evening, Ray and his co-worker Dave (John Hawkes) drive to Boston to meet Julie. They stop due to a car in the middle of the road. As Ray gets out to inspect the scene, Ben Willis appears and kills Dave with his hook. Ben takes Ray's truck and chases him down the road. Ray gets away, but is injured from falling down a hill.
The next morning, Julie and Karla depart on the trip with Karla’s boyfriend Tyrell (Mehki Phifer) and their friend, Will Benson (Matthew Settle). Knowing Will has a crush on Julie, Karla invited him as a replacement for Ray, much to Julie's discomfort. The group arrives in the Bahamas, on the island of Tower Bay, to find that other guests are leaving due to the imminent hurricane season. To her surprise, Julie is sharing a hotel room with Will. That evening at the hotel’s bar, Julie is talked into singing karaoke. She stops when the words “I STILL KNOW WHAT YOU DID LAST SUMMER” roll onto the screen. Terrified, she runs back to her room and is met by Will, who laid out for her flowers and a love note. Julie sidesteps Will's affection for her, while Tyrell and Karla (and later Will) get into the hot tub.
Julie notices her toothbrush is missing. Feeling something is wrong, she searches the room and finds Darick, the dockhand, hanging dead in the closet. She gets Tyrell, Karla, and Will, but when they return there is no sign of Darick. Julie tries to call the cops, but the phone lines are dead due to an incoming hurricane. The group and the hotel staff prepare for the storm.
The following day, the group finds that several hotel staff and the manager have been murdered and the two-way radio, their only way of contact, has been destroyed. Isolated, Julie tells the others about the previous summer. Tyrell suspects that Estes (Bill Cobbs), the boat hand porter, is the killer, since he is the only one who cannot be found. The group goes to Estes’ apartment, searching for clues. They find Julie’s toothbrush and Karla's hair tie, concluding Estes has been using voodoo to protect them. Estes appears and states the capital of Brazil is not Rio, meaning the trip was a set-up. He leads them to a graveyard in the forest with the graves of Ben Willis’ wife and daughter, and an empty grave and tombstone with Julie’s name. Estes explains that Ben and his wife Sarah had two children: a son, Will, and a daughter, Susan. Ben murdered Sarah in the hotel room that Julie is staying in when he found out about her affair and her plans to leave him with their children.
Estes goes missing, and Will volunteers to find him. Will finds Estes but he attacks Will while Ray takes a boat to the island. Meanwhile, Julie, Karla, and Tyrell head to the hotel kitchen for something to eat, and find Nancy (Jennifer Esposito), the bartender, hiding in the freezer. Ben appears and kills Tyrell. The girls retreat to the attic, where Karla is attacked by Ben. They both fall through to the hotel bedroom below. Karla runs from the room and jumps onto the greenhouse. Julie and Nancy rescue Karla and run to the storm cellar to take refuge. They find that the storm cellar stores Ben's victims. Will bursts in and convinces the girls to head back to the hotel, stating that he saw Ben on the beach.
Back at the hotel, Julie sees Will is bleeding from his stomach, so Nancy takes Karla to find a first aid kit. While retrieving the kit, Nancy and Karla find Estes has been impaled with a harpoon. Ben appears and kills Nancy. Back in the lobby, Julie is tending to Will, unable to find a wound. Will admits this is because it is not his blood. He asks Julie what her favorite radio station is, revealing he was the radio host and killed Estes with the harpoon. Will drags Julie to the graveyard, and tells her he is Ben Willis's son, explaining his actions. Ben appears and attacks Julie. Ray arrives, and a fight ensues between him and Will. When Ben tries to stab Ray, Ray moves and Ben accidentally kills Will instead. While Ben is distraught from killing his son, Julie takes a gun and shoots him in the chest. Ben falls dead into the grave made for Julie. Ray comforts Julie. Back at the hotel, Karla is found alive. The three are rescued by the coast guard.
Sometime later, Ray and Julie have married and are in their new home. Ray is brushing his teeth before bed and Julie is in their bedroom. The bathroom door is quietly shut and locked while Ray is occupied. Julie sits down on her bed, looks in the mirror, and sees Ben under the bed. She screams as Ben grabs her foot with his hook and pulls her under.
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