Toulon (Guy Rolfe) and his puppets, possessed by the spirits of dead people, is in Switzerland. He tells a story about how it all started, going back to Egypt - which for some reason is all blue. The ancient sorcerer Afzel (Jack Donner) has stolen the secret of life from the god Sutekh. He heads to Paris (which is also all blue, no reason for this is ever given) pursued by Sukekh's mummies. Afzel is attacked outside a theatre where young Toulon (Greg Sestero) and his friends hold creepy puppet shows.
Afzel teaches Toulon how to transfer the spirit from the dead to a puppet (of course!) The mummies of Sutekh now also go after Toulon too, they kill his friends. Toulon places their spirits into his puppets to create an army to fight evil! The mummies force Toulon into a showdown on a train by kidnapping Ilsa (Brigitta Dau), a girl Toulon likes...
Very strange film indeed. The film is very macabre in look and feel, and very atmospheric. The pacing and acting is often fairly off, sometimes the puppets move with more fluidity. It all adds to the weirdness and the enjoyment.