Chris Bayles brings his grandmother downstairs for his son's birthday. Billy races to greet his grandmother, and they gather for him to blow out his birthday cake. Billy makes his wish and whispers it to his grandmother. She then says that Billy has given her a new life but she doesn't have much longer to live. Chris and his wife Sylvia are uncomfortable with her discussing death so obviously. They open Billy's presents and Grandma Bayles gives Billy her present: a toy telephone. She assures him that he can call and talk to her any time that he wants. She gets short of breath and Chris escorts her upstairs. Dr. Unger comes to check on Grandma Bayles and confirms that she doesn't have long to live. Chris wants to see her and Billy insists on going along. They go to Grandma Bayles' room and she recognizes Billy but not Chris. She insists that her son was taken away and Billy is her son now. She says that she wishes Billy could go away with her, then fades away. Sylvia gets Billy out of the room while Chris holds her hand as she dies.
Later after the funeral, Billy is looking at the fish in the pond outside when his mother brings him inside. Chris is going over his mother's things and Sylvia notes she's concerned about Billy. She feels he was too close to Grandma Bayles and insisted Billy was his son, but Chris insists that it was just the sedatives. As Sylvia cleans up the house, she overhears Billy talking to someone on his toy phone. She goes upstairs and he says he was talking to Grandma Bayles and that she's lonesome and wants him to visit.
Chris and Sylvia come back home later and the babysitter, Shirley, is there with a Mr. Peterson. Peterson explains that Billy ran out in front of his car and almost got run over. Chris is puzzled since Billy never plays in the streets, and assures Shirley it wasn't his fault. Sylvia goes up to Billy's room and talks to her son, but he pretends to be asleep. She comes downstairs and Mr. Peterson says that Billy told him someone said he should run in front of his car, but he didn't say who. Shirley says that Billy hasn't talked to anyone, except to pretend-talk on his toy phone. Sylvia and Chris go upstairs where they hear Billy on his toy phone again. Chris goes in and Billy quickly hangs up. Chris asks Billy to explain what happens but he doesn't say anything and says he wasn't talking to anyone. Sylvia gets mad and Chris tries to calm her down. She storms out and Chris explains that Grandma Bayles died and won't be coming back. Billy knows that and Chris says it's okay to pretend as long as he doesn't do it in front of his mother. Chris goes out and listens at the door. He doesn't hear anything but once he leaves, Billy starts whispering on the phone again.
Later, Chris explains to Sylvia that he was Grandma Bayles' third child and the only one who survived. As a result she became obsessed with Billy. Chris tries to comfort Sylvia and they go to bed. However, later, she hears Billy laughing and goes to see him talking on the telephone. She takes the receiver and listens, then drops it in terror. Billy cries out and Chris comes to investigate. Billy runs out while Sylvia says she heard Grandma Bayles on the phone. They go down to the living room where they see that Billy has jumped into the pond. They call the paramedics, who try to revive the boy without success. Chris goes upstairs and picks up the toy phone. He talks into the receiver, asking his mother to give Billy his life back. Downstairs, Billy revives, his life given back to him
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