Jacob Daniel Johnson was the son of Alice Johnson and Dan Jordan, who first appeared in A Nightmare on Elm Street 5: The Dream Child where Freddy Krueger tried to come back to life through the unborn Jacob's dreams. Alice eventually defeated him. Not much is known about his life since the events after Dream Child, all that's known is that he's often seen spending time with his mother. It is possible that, upon meeting the Survivor Group, he developed an attraction to Stephanie.
The first time he realized Freddy was back was when the Slasher tried attacking him and Alice while at the movies. He and his mother eventually met with Maggie Burroughs, Ash Williams, Neil Gordon, and their "Nightmare Warrirors", a group that was mostly made of the survivors of both Freddy and Jason; Tina Shepard, Rennie Wickham, Steven Freeman and his daughter Stephanie Kimble. But the meeting would be cut short when Jason came in and murdered Steven right in front of them.
The group eventually escaped with help from Tommy Jarvis. After Tommy leaves, Maggie convinces the other group to go and see Gordon Russell to take the Necronomicon to defeat the killers. While Jacob and Stephanie are left behind, the group had no idea Maggie was leading them into a trap. While at the motel, both Jacob and Stephanie fall asleep and Freddy possesses Stephanie, during which he uses Jacob's crush on her to seduce him into a weak position, while in control of her body. This was mostly to draw out Alice, whom he knew would come at her son's pleas for help.
Alice uses her Dream Master powers to transport herself, Ash, and Tina into Jacob's nightmare. Though they attempt to fight him, Freddy flees, leaving Stephanie barely stable from the event and takes Jacob as hostage; along with Neil Gordon and Tommy Jarvis.
Eventually, the remaining group decide to go and try to take the book and fight back against Freddy. But the group isn't strong enough to defeat him. During her confrontation with Freddy, its revealed that Alice has a terminal illness that is weakening her Dream Master abilities. She soon sacrifices herself at the hands of Freddy to give Jacob her powers. As she dies, she releases the souls of the people Freddy has killed over the years.
Jacob becames the new Dream Master with the spirits of Amanda Krueger and the Dream Warriors. But before he could finish him, Freddy mortally wounds Jacob, leaving the spirits unable to finish him. But it leaves Tommy enough time (along with Stephanie Kimble) to finish off Jason completely. Though Freddy attempts to use Jason's soul, Neil and Nancy recite the words to open the Deadite's dimension. Freddy resists the vortex until theNecronomicon declares him unworthy and took his power. Ash finishes off Freddy, thus removing both threats.
Though Jacob and Stephanie's ultimate fates are unknown, both survived the ordeal. And leave with Tina and Neil, as Ash leaves he makes Tommy their guardian. He then says both kids will need a lot of help and therapy.