The Clöyne was a demon who inhabited a clown suit made from the creature's own skin and hair who would bond with, and possess, anybody who put the outfit on. Once possessed, the only way to be free of the demon's curse was to kill and eat five children to appease the monstrous entity.
When doting father Kent McCoy inadvertently makes a mess of his son's birthday party, he finds a clown suit in one of the properties which he lets. Putting the suit on, Kent proceeds to entertain the children, but eventually falls asleep while still wearing it. When he wakes in he morning, he is completely unable to remove the costume.
Soon, Kent develops an insatiable hunger and, in an effort to discover the cause of his affliction, tracks down Herbert Karlsson, the brother of the suit's previous owner who tells Kent that the "costume" is actually the skin and hair of an ancient evil from Northern Europe, informs him that he is slowly transforming into the demon, and that the only way to be rid of the curse is to either feed the Clöyne the five young lives which it desires, or to decapitate the suit's wearer. Karlsson also relates the story of how he had put the suit on many years ago, and was only freed from the demon's affliction after his brother smuggled five dying children from a cancer ward out to give to it.
Fearing for his family's safety, Kent leaves home and attempts suicide, but nothing that he tries has any effect, and he inadvertently kills a young boy instead, whom he later eats. Beginning to give in to the Clöyne's influence Kent then eats another child, a boy who had bullied his son.
Soon Kent's wife Meg becomes involved in an attempt to help her husband and, along with Karlsson tries to give the monster what it wants. Kent who has by now completely lost control and devoured another two children, offers his wife a chance to save him: bring the Clöyne one last child and he will be free. Meg cannot bring herself to do this, and the angry Clöyne tries to kill her, realising that she is actually pregnant and wanting her unborn baby as the final sacrifice. After a brutal battle, Meg manages to decapitate her husband, ridding the world of the Clöyne's menace, at least for now.