This sequel explains in much greater detail why Carol Anne (Heather O’Rourke) was targeted in the first film. As it turns out, the Freelings’ house in the first movie was built over a massive underground cavern that was the final resting place of a utopian cult that died there in the early 1800s. This cavern was below the graveyard that wasn’t relocated in the first film. The cult was led by Reverend Henry Kane (Julian Beck), a power-hungry zealot anxious to control the souls of his followers in both life and death.
The second film begins one year after the events of the first film, with the discovery of this cave by a ground crew, and its existence is revealed to Tangina Barrons (Zelda Rubinstein), the psychic from the first film that “cleaned” the house that is now missing. She also tells Taylor (Will Sampson), an American Indian shaman whose connection to Kane is hinted at but never fully explained (when Kane comes to the Freelings’ home and tries turning Steve against Taylor, Steve (Craig T. Nelson) acknowledges that Taylor is there by name, and Kane quietly laughs and says “So that’s what he calls himself now”). After investigating the cave for himself, Taylor realizes Kane has located Carol Anne and goes to defend her.