After a near fatal encounter with a serial killer, Los Angeles' KDHB-TV news anchor Karen White (Dee Wallace) emerges with no memory of what actually happened to her. Subsequently, she and husband Bill Neill (Christopher Stone) are invited by her psychiatrist, Doctor George Waggner (Patrick Macnee) to undergo group therapy at the 'Colony', his private rehab center isolated in the northern California woods. However, the strange people and the howling at night puts Karen on edge, so she asks her KDHB colleagues, Terry (Belinda Balaski) and Chris (Dennis Dugan), to join her. Terry uncovers evidence of werewolves and is killed by one. Meanwhile, Bill has begun meeting the Colony nymphomaniac, Marsha Quist (Elisabeth Brooks), for werewolf trysts in the woods.