After a month in the hospital, Helen is interviewed by a psychiatrist, Dr. Burke, in preparation for her upcoming trial. She attempts to prove her innocence by summoning the Candyman. The Candyman appears and kills Dr. Burke, allowing Helen to escape.

Rushing home from the hospital, Helen finds that Trevor's girlfriend (one of his students) has already moved in.

The Candyman promises to release Anthony (Anne-Marie's baby) if Helen helps him to strike fear in Cabrini-Green's residents. In a bid to feed his legend, the Candyman tries to immolate them in a bonfire, but he himself is destroyed in it. Helen saves Anthony, but she is burned severely and dies.

The residents of Cabrini-Green pay their respects at Helen's funeral, including Jake, her young informant, who tosses the Candyman's hook into her grave.

Helen's grief-stricken and guilt-ridden husband Trevor looks at his bathroom mirror and says Helen's name five times. Helen's vengeful spirit appears and kills Trevor with a hook, leaving his body to be found by his girlfriend.

Though the role of Candyman turned Tony Todd into a horror icon, he wasn't the only actor in consideration for the film's title role: Eddie Murphy was also reportedly a contender for the part.

Two stand-alone sequels comprising a single storyline were released in 1995 and 1999 respectively: Candyman: Farewell to the Flesh and Candyman: Day of the Dead.