Lieutenant Marin Kim (Sal Landi) tells his story to a reporter of how he accompanied Captain Fetterman (Andrew Divoff) to an island 200 miles off the coast of the United States allegedly to clear the island of explosive ordinance, but once there with his team they uncover an extraterrestrial secret left forgotten for 50 years that has its sights set on revenge on humans.
While the in name only sequel to Xtro, Xtro II: The Second Encounter was a troubled production, the home video market at the time meant it was successful enough to warrant this third entry which according to director and producer Harry Bromley Davenport was a much more pleasant experience than Xtro II. Xtro 3: Watch the Skies is a superior effort to Xtro II, but not to the point where I'd call it passable or serviceable.
While Xtro II took inspiration from Alien/Aliens with its tight corridors, creature effects, and general character set, Xtro 3 takes inspiration from Predator with a jungle/island setting and an alien antagonist with cloaking abilities and mixes it with aesthetic and thematic similarities to the X-Files. The movie is way better made than Xtro II and also features more engaged characters including one character named Banta who, no joke, has a backstory inspired by Tonya Harding for some reason. The alien in Xtro while a very generic design is at least more dynamic and articulated than the xenomorph like creature from the predecessor. While being better than the bottom of the barrel Xtro II, it doesn't elevate itself to good as it's still padded with thin characters who don't have the chemistry or presence of its inspiration in Predator.
Xtro 3 is what it is, a below average direct-to-video film. It doesn't do anything wrong like its predecessor, but it doesn't do anything to distinguish itself from a crowded field either.
