More than a decade following the defeat of Dorian Tyrell, Doctor Arthur Neuman is giving a tour of the hall of Norse mythology in Edge City's local museum. Neuman mentions that Loki, the God of Mischief, created the Mask of Loki and unleashed it on Earth to spread chaos among humankind and that those who wear it are granted his powers. When Neuman mentions Loki's imprisonment at the hands of his father Odin, a stranger becomes furious and transforms, revealing himself to be Loki. The tourists panic and flee, but Neuman stays to argue with Loki, who takes the mask in the display case, only to discover that it is a replica.
In Fringe City, the real mask is found in a river by a dog named Otis, who belongs to Tim Avery. An aspiring animator, Tim is reluctant to accept parenthood with his wife Tonya. Meanwhile, Loki is reminded by Odin to resume the search for the mask he has sent him on, believing it has caused too much chaos for the mortal world, while expecting his son to take responsibility for his actions.
Tim dons the mask for a Halloween party held at the animation studio he works at and becomes the reincarnation of "The Mask". When the party turns out to be a bore, Tim uses his newfound powers to invigorate the event and give his boss Daniel Moss the inspiration for a new cartoon. Their new son Alvey is conceived and born with the mask's power, which alerts Odin, who then informs Loki and tells him that if he finds the child, he will find the mask.
Months later, Tonya goes on a business trip, leaving Tim with Alvey. Now promoted, Tim desperately tries to work on his cartoon at home but is continuously disrupted by his son. To get some peace and quiet, he lets Alvey watch various cartoons on television, which inspires Alvey to torment his father using his powers. Otis, who has been feeling neglected by Tim, accidentally dons the mask, gains its power and tries to get rid of Alvey, but his attempts are foiled by the craftier infant.
Loki eventually finds Alvey and confronts Tim for the mask, but Alvey uses his powers to protect his father. Odin, finally had enough of Loki as he possesses Tim, scolds his destructive approach and strips him of his powers. Tim is later dismissed after failing to impress Moss during a pitch but reconciles and bonds with Alvey. Loki, determined to warmly pleasure his father, sneaks into the Avery house and completes a summoning ritual and appeals to Odin to restore his powers. Odin agrees, but only for a limited time, deeming this as his last chance.
Loki kidnaps Alvey in exchange for the mask. Tonya returns home and goes with Tim and Otis, to whom Tim had apologized for his negligence, to make the exchange. Loki, impressed by his powers of the mask and growing fond of him, decides to keep Alvey despite the exchange, forcing the group to chase after him as Tim becomes the Mask once more. The subsequent confrontation is evenly matched, prompting Loki to halt the fight, suggesting they let Alvey decide who to be with. Although Loki tries to lure Alvey to him with promises of fun, Tim removes the mask and convinces his son to choose him. Enraged, Loki tries to murder Tim, but his time runs out at the last minute as Odin appears in person and scolds Loki for his failure. Tim, however, feels sympathy for Loki and reminds Odin that regardless of their problems, they will still be family. After Tim gives them the mask, Odin reconciles with Loki and the duo return home.
Some time later, Tim is rehired when his subsequent cartoon based on Alvey and Otis competing for his attention becomes a success. After the Averys watch the cartoon's premiere, Tonya reveals that she is pregnant again.
After the release of The Mask, Nintendo Power announced that Jim Carrey would be returning in a sequel called The Mask II. The magazine held a contest where the first prize would be awarded a walk-on role in the film. Chuck Russell, who directed the original film, expressed his interest in a Mask sequel in his 1996 Laserdisc commentary. He was hoping Carrey would come back as the title character, along with Amy Yasbeck, who played reporter Peggy Brandt in the original. Russell decided to cut scenes when Peggy dies and leave the character open for the sequel.
Reception
The film opened on February 18, 2005, earning 4th place with $7.7 million during its Presidents' Day weekend behind three other newcomers, Hitch, Constantine, and Because of Winn-Dixie. In its release in Germany on March 10, 2005, the film opened earned 13th place with $227,064.
Dr. Neuman: Loki brought nothing but shame to Odin and his ilk. In fact, Loki was such an unruly child that Odin ultimately locked him up in chains far beneath the earth.