We start shortly after the end of the first film.  Up and coming motocross rider Dan Ketch and his mechanic sister, Barbara, are working in their garage/junkyard one night when they are attacked by a small gang of people looking to rob them.  Not able to fight them off Barbara tells Dan to try and get him and the bike out of the shop.  He needs the bike for a ride the next day, and can’t afford to let it be stolen or destroyed.  They run off into the junkyard, with Barbara leading the gang away from where Dan takes the bike.  Barbara is caught and beaten by the gang.  Dan moves to run to her aid when Mephistopheles appears before him.  He offers him the power to save his sister and stop the gang by becoming his new rider.  Dan agrees and becomes the new Ghost Rider.  As GR, his skull is black with blue flames.  He beats the gang, but Barbara is badly hurt and goes into a coma. 

We cut to present day where Johnny is continuing with his stunt riding, which is actually just a cover now for his traveling around the world fighting Mephistopheles’ demons and such.  We start with him performing a stunt during the day, and that night hunting a demon.  Johnny and Dan are brought together for a publicity stunt which turns into an ugly rivalry.  Dan is being described as the new heir to the throne of daredevil stunt riding, having evolved from his motocross days.  In an interview before the event Dan bad-mouths Johnny calling him a has-been and other things.  It’s evident during the publicity stunt that both men are trying to outdo each other.  Johnny gets a bad feeling from him, and can feel the GR trying to come out, but doesn’t know why.  Dan is overly aggressive, and causes a stunt to go awry.  The event almost becomes a disaster.  The event is declared a draw, which only fuels Dan’s ire.  That night, while out on the town, Dan calls Johnny out and leads him on a wild chase through the city.  He takes Johnny to an abandoned factory where he changes into Ghost Rider.  Johnny, shocked at learning there’s a new GR, changes too, and the two of them fight.  During this fight we see some of the new tricks that Dan has.  He takes Johnny’s chain and uses it against him.  During the fight, Johnny leaches some of Dan’s flame weakening him.  Dan leaves Johnny beaten, but not dead, and rides off taking the chain with him.  The next day, Johnny tries to find out what the story is on Dan.  Roxanne finds the news story and tells Johnny about him and that his sister is still in a coma.  He realizes that this also explains the difference in the color of Dan’s flame, much like his own from the first movie when he’s over come with guilt.  Their attackers were released by the police on a technicality and never seen again.  Roxanne shows Johnny a police photo of the gang responsible for the attack on Dan and his sister.  Johnny recognizes them as being servants of Mephistopheles.  Johnny discovers in his books that he and Dan are attached by the imprisoned spirit of Zarathos, the Spirit of Vengeance.  The legend is, Mephistopheles battled Zarathos and trapped him in hell.  He uses Zarathos’ power by tricking people into becoming the Ghost Rider, but to do his bidding, instead of being avengers. 

Meanwhile, Meph appears before Dan and tells him that his sister will never recover from her coma until Johnny is dead.  He reminds him that if she were to die now her soul would go to him for evil deeds she had done.  He claims that Barbara lied, stole, and cheated to get Dan where he was on the motocross circuit.  Johnny seeks Dan out to tell him the truth about Meph, and the two meet and battle again.  This fight is close to an all out war in the center of downtown.  Dan even swings the chain with it separating into links that become throwing stars that cut through Johnny and come back together; like it did in his comic series.  Johnny fights hard, but holds back, not wanting to hurt Dan, but try to convince him that he’s being manipulated.  A lot of Johnny’s outfit is ripped apart, and we can see how he is made up.  As shown in the Ghost Rider Vol. 3 series, he’s a skeleton and fire.  The sleeve of his jacket is ripped open at the bicep and all we see is fire and bone, but the jacket area around it still has form and definition.  Johnny is finally able to convince Dan of the truth, and he stops, refusing to kill Johnny.  Meph is furious, and unleashes a demon to kill them both.  After battling each other, neither of them is a match for this demon.  Johnny thinks back to Zarathos and when he leached Dan’s power earlier.  The two of them combine themselves and fully embody the spirit of Zarathos who destroys the demon.  With the demon defeated, they split back into themselves and face Meph.  Meph curses Johnny again for beating him, and punishes Dan by leaving his sister in a coma, never to recover.   The next day Johnny joins Dan at the hospital to visit his sister.  Johnny tells Dan he wants to try something, telling him that everything Meph said was a lie, and that he has no true hold of Barbara’s soul.  The two hold hands and place their other hand on her body.  A cool fire flows over her body and she awakens from her coma.  Johnny goes to leave and Dan asks him where he’s going.  Johnny tells him that he has an offer to perform some stunts over in Europe.  We cut to a dark night with Johnny GR chasing a banshee over the rolling hills of Scotland.

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