In Los Angeles, mechanic Ashe Corven and his eight-year-old son Danny are murdered by notorious drug kingpin Judah Earl after they witness a gang of Judah's henchmen murdering a fellow drug dealer. The two are then dumped into a harbor.
Sarah from the first film is now an adult, working in a tattoo parlor by day, and painting surreal images of death and resurrection in her apartment at night. She is haunted by disturbing dreams about Ashe and Danny, and after a day's work in the tattoo parlor, Sarah is visited in her apartment by a large crow as she contemplates a ring that Eric Draven gave her years before.
Sarah follows the crow to the harbor at night on All Saints' Day, and witnesses Ashe's resurrection and frantic escape from his watery grave. She takes him to her apartment. When Sarah tells Ashe he is dead, he panics and runs screaming into the night, ending up at his own home, where he relives the final moments of his life.
Sarah arrives there to find Ashe brooding, and she explains that he has been resurrected by the Crow so he can exact revenge on the criminals who killed him and Danny. With the guidance of the crow, Ashe starts killing Judah's henchmen, one by one. Ashe first visits Spider-Monkey in a drug warehouse and interrogates him as to who else was involved in the murders. Ashe then kills him by blowing up the building. Another of Judah's lackeys, Nemo, is spending the night at a peeping booth. Ashe appears in the booth, and kills him, leaving a doll stuffed in his pants with a paper crow in his mouth.
Judah has in his employ a blind prophetess named Sybil who is able to ascertain Ashe's link to Sarah and to the crow that is the source of his powers. Judah captures Sarah in order to draw Ashe to him and steal his power.
One of the murderers, Kali, goes to Sarah's apartment to draw Ashe out. While battling her, Ashe realizes that Kali is the one who killed Danny; enraged, he throws her against a wall that breaks her leg, and then out a window, leaving a crow-shaped blood pattern. Ashe then pursues Judah's right-hand-man, Curve, in a motorcycle chase. Ashe shoots Curve's motorcycle, which blows up and throws Curve onto the road. Ashe then drags Curve into the nearby river, leaving him to die as local parishioners cast down flower petals in the shape of a crow.
