Alice was a quiet girl who escaped from her dysfunctional homelife with her alcoholic/apathetic father in daydreams, because, as she tells Kristen, when you dream, "You're in control." Whenever Alice dreamed, she'd remember an old nursery rhyme about "the Dream Master" that her mother had taught her. This turns out to be a counterspell that will allow her to regain control over her dreams and defeat Freddy. She kept a mirror completely covered with pictures because she did not want to see herself as she really was. As time passed and Alice accepted herself, she removed the pictures. In The Dream Master, Alice was a friend of Kristen Parker's, who dated her brother Rick. After her friends Kincaid and Joey were killed, Kristen turned to Alice for advice about dreams, which Alice gave her. Later, Alice was pulled into Kristen's fight with Freddy Krueger, who was plaguing the children of Elm Street. When Kristen was killed, she passed her power to draw people into her dreams to Alice, which did more to hinder Alice than to help her. She was too late to save Kristen in the real world, however, and Kristen burned to death. Freddy then begins to use the power to draw people in, through Alice, to gain access to the dreams of other children and proceeds to kill Rick and many of Alice's friends. However, an unexpected effect occurs. Unlike Kristen (if she had this ability, she would have used it. This is a right reserved only to the dream master,) Alice absorbs the "dream powers" and personality traits of each victim causing her to become stronger herself, and proving she had no need for Kristen's dream-sharing talents. Alice confronts Freddy in the Dream World but is unable to seriously harm him despite her newly acquired powers. Just as Freddy has her cornered, she remembers and recites the Dream Master rhyme: "Now I lay me down to sleep, the Master of Dreams, my soul I'll keep, In the reflection of my mind's eye, evil will see itself, and it shall die!" Using a piece of broken glass, she forces Freddy to see himself. The Dream Master is considered the supernatural opposite of Freddy, and thus, has as much positive power as Freddy has negative. It was already established early in the films that Alice, in a child form, is a dream guardian over Kristen, though at first too weak to do anything about Freddy except detect him. But as Freddy says, "I've been guarding my gate for a long time," it is clear that the Dream Master can open the positive dream gate. This enables the imprisoned souls of his victims to escape, tearing Freddy to pieces in the process.

In The Dream Child, Freddy uses the dreams of Alice's unborn son, Jacob, whom has the power to pull others into his dream, to murder more people including Daniel Jordan, the father of Alice's baby. Freddy feeds the souls of his victims to Jacob, trying to make Jacob more like him. However, Alice, with help from the spirits of both Amanda Krueger and Jacob, defeats Freddy once more and traps him inside Amanda Krueger. Alice later gives birth to Jacob and moves away from Springwood.