Paranormal Activity 3 is a 2011 American found footage supernatural horror film, directed by Henry Joost and Ariel Schulman. It is the third (chronologically, the first) installment of the Paranormal Activity series and serves as a prequel, mostly set 18 years prior to the events of the first two films. It revolves around siblings Katie and Kristi who lives with their mother Julie and her boyfriend. Paranormal situations trigger off in their house when the two girls befriend an invisible entity, Toby.