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Gremlins 3 reunites Billy Peltzer (Zach Galligan) and Kate (Phoebe Cates) decades after their original encounters with the mischievous Mogwai. Now living a quiet life outside New York, they have kept Gizmo protected and hidden from the world. But when a powerful tech corporation called Genetrix Labs discovers old records of the Mogwai species, they begin a covert search to capture Gizmo and unlock his genetic secrets.
The trouble begins when an intern accidentally exposes Gizmo to water inside the lab’s secure testing room. Several new Mogwai emerge — but unlike before, these mutants adapt faster, learning to communicate and coordinate. When Genetrix attempts to contain them, the Mogwai deliberately feed after midnight, triggering a new breed of highly intelligent, evolved Gremlins.
The Gremlins escape into the city, causing chaos through hacked billboards, sabotaged power grids, and automated delivery bots gone rogue. Billy and Kate are forced out of hiding when Gizmo becomes the Gremlins’ primary target — they want to use him as the “original code” to create an unstoppable army.
As the city falls into mayhem on Christmas Eve, Billy teams up with Gizmo, who has grown braver and more determined than ever. Kate uncovers Genetrix’s involvement and exposes the company’s illegal experiments, forcing authorities into action.
The final battle takes place inside the Genetrix skyscraper, where the Alpha Gremlin attempts to merge with an AI system to evolve further. Gizmo, armed with a custom-made miniature bow and flaming arrow, destroys the AI core, causing the Gremlins to overload and dissolve into digital-static ash.
In the end, Billy and Kate decide they can no longer hide Gizmo. Instead, they vow to protect his species by searching for others like him — setting up a new adventure to uncover the true origin of the Mogwai.