The full plot of Insidious: The Last Key runs from a 1953 childhood trauma to a family reunion inside the Further, and it ends on a phone call that leads into the first film.
In the prologue, Elise's harsh father, Gerald, punishes her for seeing ghosts. In the basement she accidentally lets a demon called KeyFace out through the red door, and the demon kills her mother, Audrey.
In the present day Elise takes Ted Garza's call and finds that his haunted house is the home where she grew up. She goes back and uncovers a hidden room in which Ted has been holding women captive. KeyFace then attacks her family, and her niece Melissa is left in a coma. Elise is also dragged into the Further, the spirit realm where the demon keeps the souls he has taken.
There she learns that KeyFace controlled both her father and Ted, and that he fed on the fear of their victims. Elise, her niece Imogen and her team fight their way through the Further. On the way they pass through a red door and briefly see a boy named Dalton in his bedroom, a quiet nod to the family at the center of the first film.
Gerald's spirit gives his life to protect Elise. Audrey's spirit helps the group escape, Melissa wakes up, and Elise makes peace with her mother's spirit and with her brother Christian. The closing scene is a phone call from Lorraine Lambert, who asks for help with her grandson Dalton.