The campers go through a challenge where they are forced to survive a real horror movie. A "psycho killer" is picking them off one by one with the exception of two experts. The winner of the challenge is the last one standing. However, the challenge takes a frightening twist when somebody encounters a real killer. In the end, another person leaves the island for fearing someone who wasn't the killer.
The episode opens with the remaining eight campers watching a scary horror movie, in which a man with a chainsaw and a hook terrorizes his victims. Duncan, Gwen and Izzy are the only ones who enjoy the movie while DJ is mortified by the gruesome scenes. After the movie, Izzy says she loves scary movies and jumps into Owen's arms, leading to both Duncan and DJ giving Owen a thumbs up for having Izzy in his arms. Duncan then pulls out a hook, frightening an already terrified DJ even more. In the confessional, DJ is incensed with Duncan telling him it was not cool. Afterwards, Duncan and Gwen share their love for horror movies by referencing scenes from their favorite movie: Bloodbath 2: Summer Camp Reign of Terror. However Heather is unimpressed by the 'mindless' movie and wonders aloud what their next challenge will be while Geoff wonders where Chris is.
Moments later, the campers see Chris and Chef, with frightened looks on their faces, getting on the Boat of Losers with their luggage and hastily leaving the island. Owen then finds a bag left behind along with a newspaper that has an article about an escaped psycho killer with a chainsaw and a hook. DJ thinks it seems real, but Heather dismisses the whole thing as another stunt by Chris. Owen then points out that Chris, in his hurry to leave, forgot his hair gel. DJ is terrified by the situation and Duncan just makes it worse for him with the hook again. DJ then has the feeling they are being watched. Moments later, the scene shifts to Chris, who is watching the contestants with the aid of a number of monitor screens. Chris explains that tonight's show will focus on the campers struggling to survive the wrath of a killer with a chainsaw and a hook.
Back on the island, Gwen says they need a game plan to survive, but Heather says she's going off to apply a facial mask. Gwen strongly disagrees with Heather's plan and says the first rule of slasher films is to never go off alone. Heather replies that this might be true if she were in a movie, but they are just getting punked by Chris. As Heather leaves, Izzy muses that she is sealing her fate and makes a throat cutting gesture to indicate what she thinks. Gwen gets the others to join her at the bonfire site to talk strategy, but Izzy grabs Owen to one side and the two head out in the woods together. Owen tells Izzy about the time he won a hot dog eating competition when he ate one hundred and ninety eight hot dogs, impressing Izzy. But after the story, Owen tries to remember why they shouldn't be in the woods. Back at the bonfire site, Gwen goes over the survival rules such as not going off on their own, not going into the woods alone and never make out in the woods or they will die in there. Gwen asks where Owen and Izzy have gone to and Duncan replies that they are breaking rules one through three.
Back in the woods Owen realizes that the couples who are making out get killed first. But Izzy points out that they are not making out. However, in an act of spontaneity, Owen and Izzy jump into some bushes nearby and start making out even as a figure looking like the escaped killer nears the area. Moments later, the two run from the area screaming with the figure running after them. After a short chase, Owen falls off the edge of a cliff and hits a goat, fire hydrant, cactus, a plunger that sets off explosives and a campfire before hitting the bottom. Izzy follows him with the same sounds ringing out as she descends and lands on Owen. Moments later, the killer approaches them and Owen pushes Izzy in the direction of the killer to save himself. Owen runs away and a few moments later, he enters the tent where Chris is monitoring what is going on. Chris explains that the "killer" is actually Chef in disguise and that the main challenge to "survive". Izzy laughs about it on her way to Owen, saying it was a good one. Owen laughs too trying to make it better by joking about it, which Izzy doesn't buy. Owen realizes it's not working as she's still on the part where he pushed her into the escaped killer with a chainsaw and a hook. Owen asks if he's getting to second base. Izzy shakes her head. "Is he getting to first base?" Izzy shakes her head. He then asks, "Is he getting up to bat?", to which she punches him in the head.
Chris sends Chef out to do more terrorizing and back at the bonfire, Gwen continues to go over the plan for surviving by showing the figures she has drawn on a chart and notices DJ and Geoff are missing, which Duncan says they went to the washroom. At the washroom, DJ begs Geoff not to leave no matter what and Geoff agrees to stay. However, Geoff is lured away by the sound of an ice cream truck (courtesy of Chris) and when DJ sees Heather wearing a lime green facial mask and towels, he screams and runs at the same time. After running over hills, off a cliff, through the base of the lake, down the Dock of Shame, and into Chris's tent, DJ is brought to his senses when Izzy slaps him across the face. Chris tells DJ the truth about the killer and points out DJ bailed out without even encountering Chef in disguise. But DJ protests that Heather's appearance is scary as well.
Gwen enters the washroom through the hole DJ made earlier when he ran away and asks Heather if she is okay since she heard DJ scream. Heather says she is fine and wants a shower without Gwen around. After Gwen leaves, Heather goes to enter the shower, but is terrified to see the killer standing a few feet away. A short time later, in Chris's tent, Chris lectures a bug eyed Heather that if she had paid attention to the rules of a scary movie about not going off alone, she'd still be in the game.
At the bonfire, Gwen asks where Leshawna has gone and when Duncan says she went to get some food in Chef's kitchen. Gwen sighs and crosses out Leshawna's figure on her chart. In the kitchen, Leshawna grabs a plate of brownies and hears her name being whispered followed by the killer appearing. Leshawna talks tough at first, but ultimately runs off and winds up in the tent with Chris and the other people eliminated. However, she laughs it off, claiming that she didn't see it coming. Chris points out that challenging the killer was crazy, but she scored points for bringing some brownies to everyone. Outside, Geoff is still looking for the ice cream truck he heard earlier. He gets tapped on the shoulder by the killer, to which Geoff asks if he's seen the ice cream truck. After several seconds of obliviousness, Geoff finally realizes who's behind him and screams. Moments later, Chef deposits a wide eyed Geoff in the tent with Chris and the others where DJ chastises Geoff for leaving him earlier. For Gwen, she's frustrated that no one listened to her and if they did, they would still be in the challenge. Talk turns to Duncan's pyromania side, which he sets Gwen's chart on fire. When Gwen goes to get water, she notices Duncan is missing. She gets so mad that she decides to forget about the killer and go to get a sandwich.
Hearing his name being whispered, Duncan makes his way down to the dock and encounters the killer. Duncan hurls a chair, a canoe, a life preserver, a surf board and a fish at the killer before watching the chainsaw cut into the dock just in front of him. Duncan grabs the chainsaw from him and prepares to see who's behind the mask. Elsewhere, Gwen is eating a sandwich at the dining hall when a shadowed figure carrying a chainsaw and a hook approaches her, but Gwen is not frightened. Meanwhile, Duncan, carrying the mask, and Chef enter Chris's tent and everyone notices that Gwen is about to deal with the another killer. But with Chef in the tent, they realize that Gwen is in the kitchen with a real psycho killer. As they run in a hurry to save Gwen, she talks to the killer as if he is an actor, telling him to invest in a dental plan and toothpastes. Moments later, Chris and the others arrive and yell to Gwen that she's facing the real killer. Gwen screams and kicks the killer in the face several times. Upset by this treatment, the killer leaves, muttering that he was treated better in prison as Gwen is congratulated by Duncan for her actions with a high five.
Afterwards, Chris states that it is agreed that Gwen receives invincibility for this challenge due to her actually beating the real killer. On the other hand, DJ is unanimously chosen to be eliminated by Chris since he freaked out without meeting the killer. After a group hug, he walks the Dock of Shame and leaves the island while the killer, watching from nearby, repeatedly whispers "Total Drama Island" before he whines about his sore nose, and asks if he's bleeding.
- Chef Hatchet appears, but he has no lines. However, he is heard warning Gwen about the killer, along with Chris and the other contestants.
- According to Gwen, some of the rules of surviving a horror movie are:
- The surfboard that Duncan throws at Chef looks similar to the one owned by Bridgette.
- It is revealed in this episode that Leshawna grew up in the housing projects.
- This is the first episode to take place entirely at night.
- This is the first time in the series that something happens in the challenge which Chris didn't plan (as he never anticipated that a real killer would enter the challenge).
- This is the first horror-themed challenge of the series, which starts the trend of each season having one.
- This is the first episode of Total Drama that shows Owen and Izzy together as a couple.
- As of this episode, all original couples of Total Drama Island have been formed.
- This is the second time in a row that someone leaves the island without getting voted off.
- This episode's title is a parody to the phrase, "Hook, Line, and Sinker".
- Most of the concept of the episode appears to be tied to Friday the 13th in its concepts and jokes:
- The hockey mask worn by the killer (both Chef and the real one) is an obvious homage to Jason Voorhees, with such details as the red markings on the sides.
- The setting of both the film and Total Drama Island being at a summer camp.
- Both Chef and the actual killer imitate the peculiar "breathing" done by Jason before he attacks his victims, as well as his habit of chanting words before the kill.
- The scene in which Duncan throws various items at the killer is a parody of the original movie in which the main character Alice throws many objects at Mrs. Voorhees, who isn't affected by them at all. In addition, Duncan confronts the killer near the lake similar to the final confrontation between Alice and Mrs. Voorhees. Finally, Duncan, like Alice, defeats the killer using the killer's own weapon.
- The idea of Chef impersonating a masked killer is similar to Roy Burns in Friday the 13th part V who impersonates Jason.
- The fact that the supposed killer is Chef Hatchet, who is the camp's cook, is similar to how the killer in the original Friday the 13th (Pamela Voorhees) used to be the cook at Camp Crystal Lake.
- Also, the movie that the campers were watching looks similar to the original Friday the 13th movie (although Jason Voorhees doesn't appear until the second movie).
- Other prominent parodies of horror movies include:
- Texas Chainsaw Massacre: The chainsaw is a reference to the signature weapon of the series. In addition, the outfit worn by both killers, most prominently the dirty apron, is similar to the outfit commonly worn by the main killer of this series, Leatherface.
- Halloween: The concept of a mentally unstable killer escaping prison could be a reference to Michael Myers, the main killer of this series.
- Psycho: Heather being attacked in the bathroom while taking a shower is an obvious homage to the infamous shower scene from this film.
- I Know What You Did Last Summer: The killer's hook is a homage to the hook worn by Ben Willis.
- Sleepaway Camp: Very much like the original Friday the 13th, the movie takes place in a summer camp.
- Scream: Gwen's speech on how to survive may also be a nod to Randy Meeks' speech on the various rules to survive a horror movie including the rule of couples making out alone being the first to die
- The part where Owen exclaims "Great balls of fire!" could be a reference to the Jerry Lee Lewis song, Great Balls of Fire.
- Duncan's confessional before he faces off with the "killer" is a reference to The Untouchables.
- This episode share many similarities with one of Danny Phantom episodes, Claw of the Wild.
- Both episodes featured a haunted summer camp theme.
- Both episodes features campers being hunted down one-by-one, leaving only two survivors.
- Gwen's position as the final survivor to face the killer fulfills the "Final Girl" trope such as Alice from the original Friday the 13th, Nancy Thompson from Nightmare on Elm Street, Laurie Strode from Halloween, and Sidney Prescott from Scream.
- The contestants being unaware a challenge is in progress combined with the way Chris watches from the monitors is similar to the television prank show Punk'd. Heather and Owen both directly reference it by saying Chris "punked" them.
- When she is placing her finger across her throat like a knife, Izzy has five fingers instead of four.
- When Duncan confronts the "killer", he cut off Chef's hook with the chainsaw, but when everyone runs to warn Gwen about the real killer on the loose, Chef's hook is restored.
- Despite the fact that the whole episode takes place at night, when the campers are in the confessional, it is daytime. This is another reference to the theory that the campers talk about their experience after the challenge ends. This, however, creates a plot hole as DJ is in the confessional and yet it is still night when he is eliminated, therefore it should have been night time when he is giving confessions.
- When Chef is coming towards Duncan in his killer costume, he's wearing his chef hat; however, it disappears in the next shot when Duncan starts throwing things at him.
- When Izzy and Owen are rushing through the woods, Izzy's wristband is missing, and then when Izzy is watching Owen fall down the cliff, her wristband is on the wrong arm.
- When Gwen puts out the burning chart, there are still all the X's on the campers. However, when the camera zooms out, none of the pictures are crossed out.
- Chef's chainsaw is taped to a hockey stick and he uses the stick like a handle, but when his silhouette is shown, he is holding the chainsaw by its regular handle and there is no sign of the hockey stick.
- When everybody is hugging DJ at the end of the episode, Duncan has five fingers as opposed to four.
- When Leshawna sees the brownies, they are arranged as if they were in the baking pan. When she approaches the main lodge door, the brownies are stacked. In the next frame, they are back in the pan arrangement.
- When Owen and Izzy emerge from the bush after making out, he has lipstick markings covering his face that disappear for the rest of the episode.
- When Izzy falls down the cliff and sets off the dynamite, the flash goes off approximately a second and a half before the explosion can be heard.
- When Duncan leaves to face the killer, he drops the burning sticks to the ground. But when the screen zooms out after Gwen puts out the fire, the burning sticks are nowhere to be seen.