The rogue agent, Maclain, in one of the rooms in the Bodega Bay Inn, reading Toulon's diary, hoping to find some secret to the formula. While reading, we are viewed a flashback from Puppet Master II. It's 1926, and Andre Toulon's puppet set has been burned down. He and his wife Elsa are introduced to a Cairo Merchant, who in fact happens to be the one who burned down the set. He claims to Toulon that there's another way of reanimation. He offers Toulon to buy the formula instead of using Afzel's Egyptian ring to bring puppets to life. Toulon and Elsa agree to buy it.