PUPPET MASTER (1989)

Follows four psychics who investigate the apparent suicide of their former colleague, Neil Gallagher, at the Bodega Bay Inn in California.  They discover that Neil had found the secret to André Toulon, a puppeteer who used an ancient Egyptian spell to bring his creations to life.  Before being captured by Nazi spies in 1939, Toulon hid his animated puppets in a wall compartment and committed suicide. 

The psychics are hunted by Toulon’s deadly puppets, including Blade, Pinhead, Jester, Tunneler, and Leech Woman.  Neil Gallagher is revealed to be alive, having used Toulon’s secret to resurrect himself, but he is ultimately killed by the puppets he sought to control. The film ends with the puppets continuing their reign of terror, leading to an extensive franchise.