Psycho III is a 1986 American slasher film, and the third film in the Psycho franchise. It stars Anthony Perkins, who also directs the film, reprising the role of Norman Bates. It co-stars Diana Scarwid, Jeff Fahey, and Roberta Maxwell. The screenplay is written by Charles Edward Pogue. The original electronic music score is composed and performed by Carter Burwell in one of his earliest projects. Psycho III is unrelated to Robert Bloch's third Psycho novel, Psycho House, which was released in 1990.
The film takes place one month after the events of Psycho II where Norman Bates is still running the Bates Motel with the corpse of Emma Spool still sitting up in the house. A suicidal nun, with whom Norman falls in love, comes to the motel along with a drifter named Duane Duke. A reporter also tries to solve the mysterious disappearance of Mrs. Spool as someone begins another murder spree.
Released on July 2, 1986, Psycho III grossed $14.4 million at the U.S. box office on a budget of $8.4 million, becoming a financial failure and the lowest-grossing film in the series. It received mixed reviews from critics and was followed by a television prequel, Psycho IV: The Beginning.