"Lunacy" is loosely based on two short stories by Edgar Allen Poe and inspired by the works of the Marquis de Sade. In 19th-century France, a young man, Jean Berlot, is plagued by nightmares in which he is dragged off to a madhouse. On the journey back from his mother's funeral, he is invited by a Marquis he meets at lunch to spend the night in his castle. There Berlot witnesses a blasphemous orgy and a "therapeutic" funeral. Berlot tries to flee but the Marquis insists on helping him conquer his fears and takes his guest to a surrealistic lunatic asylum where the patients have complete freedom and the staff are locked up behind bars.