Characters:
Kurt-average teenage boy, main character, known to see visions and not realize that they are unreal, does things he does not remember everything later on
Joey-close friends with Kurt, almost like his brother, always sticks by him, knows about his visions, tries to help Kurt through it
Mrs. Carly Doe-Kurt's mother
Mr. Rick Doe-Kurt's father
Jim, Nick, Carla and Rose-Kurt's other friends
Abraham-a young man in Kurt's imaginary world, a drug addict, long hair, blood shot eyes, somewhat raggy clothes
Selina-a little girl in Kurt's imaginary world, always carries a demonic looking clown doll, never lets anyone else have
Romeo-an older man in Kurt's imaginary world, always sitting in his chair with a cigar, rarely stands up or walks around
Alexa-a middle aged woman in Kurt's imaginary world, kind of crazy, has many pets
Donnie-a strange black spirit in Kurt's imaginary world, is the one who leads him to the other world

The story:
It is the first summer of high school after finishing of his freshman year. Kurt get's in a car accident with his parents, his father is killed, his mother goes in a coma, he gets severe head damage, the cause of his soon to start visions. Kurt lives with his good friend Joey, although his parents are never around, they are a rich family and it's not problem to keep another person with them.

One night Kurt wakes up when he feels someone sit on his bed, he opens his eyes to see a dark, shadow sitting there, he had no fear of it, and almost in a trance like state stood up and followed the spirit. What Kurt sees around him is a cave, when in reality he is just walking through the house, and then outside on the streets. The shadow leads him to a door at the end of the "cave", when it shows the real world you see Kurt standing in front of an old, run down, abandoned warehouse. The shadow opens the door and beckons Kurt inside, he walks in. The warehouse is pretty much empty and dark, with paper left around, some piles of wood and a few boxes, but Kurt sees a large room, with stain glass windows, castle-like walls and a medieval setting, although the people he sees inside are not medieval themselves. Sitting in a throne-like chair across the room is an old man smoking a cigar, passed out on the floor is a long haired bum with a needle sticking out of his arm, playing on a large table is a little girl carrying a clown doll and she is making it knock down a doll house, and watching the little girl is an older woman, holding a cat, with a dog at her side and there are other animals roaming around the room. As soon as Kurt takes a few steps into the room all of them turn towards him, even the man passed out who is now awake. The shadow goes in front of Kurt, "Welcome, I am Donnie." The others introduce themselves as well. Soon Kurt is enjoying a smoke with Abraham, when in the real world he's just "smoking" a rolled up piece of paper from the warehouse floor, and talking with Alexa, while Selina chases Donnie around the room. This group of people is who Kurt starts to visit every night, only to be led out my Donnie before dawn to return home. At first he just visits them, and it shows his life going as normal, except Kurt is usually a little more tired. But before long the people in his world start leading him out during the night, he begins to steal things, he does what they tell him, each person in his world leading him out at night to do something different. The movie shows Kurt's night with his "friends" and then how it effects his life in the real world. He only tells Joey of these visions, and Joey begins to follow him when he goes out at night, and begins to see the things Kurt does. He steals money to buys drugs with Abraham, kidnaps young children and brings them to the warehouse with Selina, slaughters various animals with Alexa, and does things with Donnie that could possibly lead to murder of another human. But when Joey intervenes much darker force rises from the depths of the people Kurt referred to as his "special friends". They begin to make Kurt attempt to hurt Joey and everyone else close to Kurt who could possibly make him stop feeding the spirits. For all the people Kurt sees are the ghosts of people murdered in his town by who Kurt later finds out was his father. The spirits showed themselves to Kurt to allow him to be their servant in payment for his father murdering them. They manage to get Kurt to poison Joey, and sneak into the hospital to unplug his mother, his other friends have no idea what was going on and pitied Kurts loss of his friend and mother, but Donnie, now taking the form of a bright angel, reveals that he had been possessed the whole time and tells Kurt, who does not remember that he killed Joey or his mother since he did it during a vision, the truth about everything. The movie ends with Kurt committing suicide over his guilt, and Donnie carrying his soul to the afterlife, and sending the spirits who used him to hell.